Shutdown continues: Trump admin freezes billions for Democratic states, warns of federal layoffs 

The government shutdown entered its third day Oct. 3 as the Senate again failed to advance either party’s stopgap funding measure.

A GOP-backed plan fell 54-44, with three members of the Democratic caucus — Sens. Catherine Cortez Masto of Nevada, John Fetterman of Pennsylvania, and Angus King of Maine — joining Republicans for the third straight vote, NBC News reported. Sen. Rand Paul, R-Ky., was reportedly once again the lone Republican holdout. A Democratic proposal also failed, 46-52. 

With lawmakers set to leave Washington until Oct. 6, the shutdown will last at least six days, according to NBC.

Meanwhile, the White House has responded by signaling that thousands of federal workers could soon face layoffs and freezing billions in federal funds in over a dozen blue states.

White House Budget Director Russell Vought announced the cuts on social media this week. 

The cuts include $2.1 billion for Chicago rail upgrades to “ensure funding is not flowing via race-based contracting” and nearly $18 billion in infrastructure projects in New York City “to ensure funding is not flowing based on unconstitutional DEI principles,” Vought said.

He added that roughly $8 billion has been cut in “Green New Scam funding to fuel the Left’s climate agenda” in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington.

White House Press Secretary Karoline Leavitt told reporters Oct. 3 the administration is also reviewing sending federal aid to Portland, Oregon, saying “we will not fund states that allow anarchy.” 

“I just spoke with the president about this, and he has directed his team here at the White House to begin reviewing aid that can potentially be cut in Portland,” she said. 

She also said there will “be an additional surge of federal resources to Portland immediately,” including enhanced Immigration and Customs Enforcement (ICE) resources.

At the same time, Leavitt warned that federal layoffs are being weighed as part of broader cost-cutting.

The administration has “an unenviable choice to have to take a look at the balance sheet and identify where these cuts and layoffs can be made,” she told reporters.

“We are $37 trillion in debt, and the federal government is currently shut down. There is no more money coming into the federal government’s coffers,” she said, adding, “The Democrats have given the administration this opportunity, and we don’t like laying people off.”

In an Oct. 2 Truth Social post, President Donald Trump said he would meet with Vought to decide which “Democrat Agencies” to eliminate, either temporarily or permanently.

“I can’t believe the Radical Left Democrats gave me this unprecedented opportunity,” Trump wrote. “They are not stupid people, so maybe this is their way of wanting to, quietly and quickly, MAKE AMERICA GREAT AGAIN!” 

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