President Donald Trump on Thursday framed the ongoing government shutdown as an “unprecedented opportunity” to target federal agencies and slash spending on projects he said were favored by his political opponents. Speaking publicly amid the second day of the shutdown, Trump blamed Democrats for the impasse while signaling plans to use the funding lapse to implement deep cuts across government programs. The announcement followed recent actions by the Trump administration to freeze roughly $18 billion in infrastructure projects in New York City and cancel about $8 billion in climate-related projects in Democratic-leaning states—moves that drew attention because both funding halts affect regions represented by top Democratic leaders Sen. Chuck Schumer and Rep. Hakeem Jeffries.
The funding freezes were formally announced by Russell Vought, director of the White House Office of Management and Budget (OMB) and a key architect of the conservative Project 2025 blueprint for overhauling federal agencies, rather than the departments responsible for overseeing the projects. Trump said he would meet with Vought to determine which “Democrat Agencies, most of which are a political scam,” should be cut, and whether those reductions would be temporary or permanent. In a post on Truth Social, Trump called the situation “an unprecedented opportunity” and said, “I can’t believe the Radical Left Democrats gave me this unprecedented opportunity.”
The administration has also signaled potential mass firings of federal employees in connection with the shutdown. A memo issued by the OMB warned agencies to prepare for workforce reductions if the government remained closed. Trump indicated that any resulting layoffs would be the Democrats’ fault, stating that “there could be firings and that’s their fault,” and adding that certain projects and programs prioritized by Democrats could be permanently eliminated. Vice President JD Vance and other White House officials said that these firings could begin within days, with White House Press Secretary Karoline Leavitt estimating that “the number of federal layoffs is likely going to be in the thousands.”
The shutdown stems from a divided Congress unable to pass a funding bill to keep the government operational past the fiscal year, which ended Tuesday. Republicans, holding the White House and slim majorities in the House and Senate, proposed a stopgap measure to maintain funding at current levels until late November. Democrats, however, insisted that any short-term funding plan include an extension of enhanced Affordable Care Act (ACA) tax credits, which are set to expire at year-end. These credits reduce health insurance premiums for a wide range of ACA enrollees. Treasury Secretary Scott Bessent weighed in Thursday morning on CNBC’s “Squawk Box,” describing Democratic negotiations over the ACA as akin to “terrorists” and stating that he could “guarantee there’s not going to be an agreement” on the matter.
Historically, government shutdowns have led to hundreds of thousands of federal workers being furloughed, though back pay is typically guaranteed once the government reopens. This time, however, the Trump administration is exploring more drastic steps, with Vance indicating that extraordinary measures could be taken the longer the shutdown continues. While no final decisions have been made regarding which employees might be affected, the administration’s posture marks a sharp escalation from traditional shutdown protocols, signaling that Trump and his team may seek to leverage the funding lapse as both a political and operational tool against programs and projects associated with Democratic priorities.
Pump Radar
Stock Alerts