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Here’s what Trump wants to do to reshape the federal government during the shutdown
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The federal government partially shut down early Wednesday after Democrats and Republicans failed to reach an agreement on a funding package.
In the lead-up to the midnight deadline to pass a budget package, President Donald Trump warned the administration could make «irreversible» changes to the federal workforce, most notably through a new wave of fresh layoffs. The president has underscored that he and his allies did not want the government to shut down, but that it opened the door for some «good» that could come from it.
Senate lawmakers failed to reach a spending agreement in time for the end of fiscal year 2025 Tuesday, after a short-term extension of fiscal year 2025 funding, aimed at keeping the government open through Nov. 21, passed the House mainly along party lines earlier in September.
GOVERNMENT SHUTS DOWN AFTER CONGRESS DEADLOCKS ON SPENDING DEAL
The federal government partially shut down Oct. 1, 2025, after Democrats and Republicans failed to reach an agreement on a funding package. (@realDonaldTrump via Truth Social)
Democrats expressed frustration at being shut out of spending negotiations and over the GOP bill’s exclusion of enhanced Obamacare subsidies that were first enacted in 2021 under President Joe Biden. Those subsidies, a COVID-19-era measure, are set to lapse at the end of 2025 unless Congress takes action, Fox News Digital has reported.
Republicans have since pinned the shutdown blame on Democrats, arguing they refused to fund the budget as an attempt to reinstate taxpayer-funded medical benefits for illegal immigrants through Democrat lawmakers’ continuing resolution, which would include extending the expiring Obamacare tax credits.
Democrat leadership have balked at the claims, throwing their own jabs at Trump and Republican lawmakers as the culprits behind the shutdown and squashing claims they want to provide healthcare to illegal immigrants.
TRUMP’S WHITE HOUSE DEMANDS AGENCIES MAP OUT MASS LAYOFFS AHEAD OF POTENTIAL SHUTDOWN
«They say that undocumented people are going to get these credits,» Senate Minority Leader Chuck Schumer said Tuesday. «That is absolutely false. That is one of the big lies that they tell.»
President Donald Trump said the government shutdown that took effect Oct. 1, 2025, will likely include mass layoffs and program cuts. (Win McNamee/Getty Images)
Trump warns layoffs on the horizon
Trump said during various public remarks Tuesday, as the countdown to the midnight deadline dwindled, that though he did not want a shutdown, it presents him with the opportunity for the administration to carry out layoffs as part of a continued mission to slim down the federal government and snuff out overspending and fraud.
«We don’t want it to shut down because we have the greatest period of time ever,» Trump said from the Oval Office Tuesday. «I tell you, we have $17 trillion being invested. So the last person that wants it shut down is us.»
«Now, with that being said, we can do things during the shutdown that are irreversible, that are bad for them and irreversible by them, like cutting vast numbers of people out, cutting things that they like, cutting programs that they like,» he continued.
A shutdown does not hand a president new powers, but instead concentrates discretion to the White House and Office of Management and Budget over what the executive branch continues operating or ending.
SPEAKER JOHNSON FLIPS SCRIPT ON DEM LEADERS WITH STAUNCH WARNING AGAINST GOVERNMENT SHUTDOWN
Under the Antideficiency Act, a federal law that guides the government through shutdowns, federal agencies are not permitted to spend funds, the Government Accountability Office outlines, except for a limited set of missions, such as performing constitutional duties. The executive branch is charged with interpreting those exceptions.
Office of Management and Budget Director «Russell Vought become very popular recently because he can trim the budget to a level that you couldn’t do any other way,» Trump continued Tuesday. «So they’re taking a risk by having a shutdown because, because of the shutdown, we can do things medically and other ways, including benefits. We can cut large numbers of people.»
Senate Majority Leader John Thune, R-S.D., speaks alongside Russell Vought, Office of Management and Budget director, from left, House Speaker Mike Johnson, R-La., and Vice President JD Vance, as they address members of the media in Washington, Sept. 29, 2025. (Evan Vucci/AP Photo )
Later that day, Trump again said that he did not want a shutdown to unfold, but that «a lot of good» could come from it in order to weed out government overspending, noting «we’d be laying off a lot of people that are going to be very affected.»
«A lot of good can come down from shutdowns,» he said. «We can get rid of a lot of things that we didn’t want, and they’d be Democrat things. But they want open borders. They want men playing in women’s sports. They want transgender for everybody. They never stop. They don’t learn. We won an election in a landslide.»
SHUTDOWN EXPLAINED: WHO WORKS, WHO DOESN’T AND HOW MUCH IT COSTS
Vought declared an imminent government shutdown Tuesday evening ahead of the deadline, pinning blame on «Democrats’ insane policy demands, which include $1 trillion in new spending.»
«It is unclear how long Democrats will maintain their untenable posture, making the duration of the shutdown difficult to predict,» he wrote in a memo Tuesday. «Regardless, employees should report to work for their next regularly scheduled tour of duty to undertake orderly shutdown activities.»
President Donald Trump speaks to a gathering of top U.S. military commanders at Marine Corps Base Quantico, Virginia, Sept. 30, 2025. (Evan Vucci/The Associated Press )
Vice President JD Vance joined the White House press briefing Wednesday and predicted that it wasn’t «going to be that long of a shutdown,» but that people will need to be laid off.
«We’re going to have to make things work,» he said. «And that means that we’re going to have to triage some certain things, that means certain people are going to have to get laid off. And we’re going to try to make sure that the American people suffer as little as possible from the shutdown.»
Vance added that the administration was «not targeting federal agencies based on politics» for layoffs.
«We’re in a shutdown, that causes some problems,» he said. «The troops aren’t getting paid. There’s nothing that we can do about that while the government is shut down. But there are essential services that we want to make sure as, as much as possible, they still continue to function. That is the principle that’s driving us forward during the shutdown.»
DOGE and vows to slim government
Anticipated layoffs and program cuts amid the shutdown follow Trump’s ongoing mission to gut the federal government of fraud, corruption and overspending, which first hit the nation’s radar in the early days of the administration when Trump launched the Department of Government Efficiency, as well as previous mass layoffs initiatives.
Back in January, the administration offered federal employees voluntary buyouts to leave their posts before rolling out reduction in force initiatives across various agencies to slim down the government.
«We have hundreds of thousands of federal workers who have not been showing up to work,» Trump said during his joint address to Congress in March. «My administration will reclaim power from this unaccountable bureaucracy, and we will restore true democracy to America again.»
SHUTDOWN FIGHT CASTS A SHADOW OVER JOBS AS TRUMP PREPARES FOR LARGEST FEDERAL RESIGNATION IN US HISTORY
«And any federal bureaucrat who resists this change will be removed from office immediately, because we are draining the swamp,» he added. «It’s very simple. And the days of rule by unelected bureaucrats are over.»
Simultaneous to reduction in force efforts and buyouts, tech billionaire Elon Musk was charged with leading DOGE as investigators scrutinized federal agencies in an effort to curb government overspending and stamp out fraud. DOGE’s work became a lightning rod for criticism among Democratic lawmakers and government employees, who filed a number of lawsuits attempting to end the investigations and audits.
Trump repeatedly has celebrated DOGE’s work during his first few months in office, including frequently listing off the various «flagrant scams» that the government was funding before DOGE’s investigations.
«Twenty-five million dollars to promote biodiversity conservation and socially responsible behavior in Colombia. This is Colombia, South America, not Columbia University. Of course, that might be worse,» Trump said in February during CPAC, rattling off different examples. «Forty million to improve the social and economic inclusion of sedentary migrants.»
«Forty-two million for social and behavior change in Uganda,» Trump continued. «Ten million for Mozambique medical male circumcisions. Why are we going to Mozambique to do circumcisions?»
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Fox News Digital reached out to the White House Wednesday morning for additional comment on the shutdown and Trump’s plans but did not immediately receive a reply.
Fox News Digital’s Elizabeth Elkind, Alex Miller and Deirdre Heavey contributed to this report.
donald trump,government shutdown,doge,congress
INTERNACIONAL
Jackson-Kavanaugh tensions surface in candid exchange over Supreme Court ‘shadow docket’
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Supreme Court Justices Ketanji Brown Jackson and Brett Kavanaugh had a dispute over the high court’s approach to its emergency docket in a rare, candid discussion during an event Monday night.
Jackson, a Biden appointee, signaled that the high court’s willingness to side with President Donald Trump most of the time when it comes to the emergency docket, sometimes known as the «shadow docket,» was a «problem.» The liberal justice is one of three, and all have frequently sided against Trump in emergency decisions, which have often broken 6-3 in favor of the president.
«The administration is making new policy … and then insisting the new policy take effect immediately, before the challenge is decided,» Jackson said, according to reports from the Associated Press and NBC News. «This uptick in the court’s willingness to get involved in cases on the emergency docket is a real unfortunate problem.»
SUPREME COURT’S EMERGENCY DOCKET DELIVERS TRUMP STRING OF WINS AS FINAL TESTS LOOM
Supreme Court Justice Ketanji Brown Jackson. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Jackson said: «It’s not serving the court or this country well.»
Kavanaugh, a Trump appointee, countered that the Supreme Court’s approach to emergency requests was not unique to the Trump administration and that the high court handled the Biden administration the same way, despite there being fewer interim requests under the former president.
Kavanaugh said presidents «push the envelope» more with executive orders because Congress is passing less legislation.
«Some are lawful, some are not,» Kavanaugh said, later adding, «None of us enjoy this.»
The pair spoke in a courtroom during an annual lecture honoring the late Judge Thomas Flannery of the U.S. District Court of Washington, D.C., while several federal judges, including high-profile ones like Judge James Boasberg, looked on.
Supreme Court Justice Brett Kavanaugh speaking at microphone. (Reuters)
Jackson’s criticism is not new; she has been perhaps the most vocal dissenter in emergency docket cases.
In August, she lambasted the Supreme Court majority for «lawmaking» from the bench in a dissent to an emergency decision to temporarily allow the National Institutes of Health’s cancellation of about $738 million in grant money.
«This is Calvinball jurisprudence with a twist. Calvinball has only one rule: There are no fixed rules. We seem to have two: that one, and this Administration always wins,» Jackson wrote.
The Trump administration has faced hundreds of lawsuits and adverse rulings in the lower courts, and the Department of Justice’s solicitor general’s office, which represents the government before the Supreme Court, often does not elevate cases to that level.
JACKSON’S SCATHING DISSENT LEVELS PARTISAN CHARGE AT COLLEAGUES AFTER HIGH-PROFILE RULING
he Supreme Court is seen, Jan. 13, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson, File)
Such emergency requests allow the government to bypass the lengthy court process, involving extensive briefings and oral arguments, to seek immediate relief in the face of restraining orders and injunctions in the lower courts.
The Trump administration has brought about 30 emergency applications to the Supreme Court and secured victories about 80% of the time, according to the Brennan Center for Justice.
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Through the emergency docket, the Supreme Court has greenlit Trump’s mass firings and curtailed nationwide injunctions. The high court has also cleared the way for deportations and immigration stops viewed as controversial by critics of the administration. The justices have also found that the government can, for now, discharge transgender service members from the military.
But Trump has not won out all the time by taking this route. The justices required the administration to give more notice to alleged illegal immigrants being deported under the Alien Enemies Act and agreed with a lower court that the president improperly federalized the National Guard as part of his immigration crackdown in Chicago.
supreme court,donald trump,federal judges,politics
INTERNACIONAL
La mayor petrolera del mundo advirtió sobre consecuencias “catastróficas” de la guerra ante nuevos ataques iraníes a refinerías
Los mercados financieros globales revirtieron parte de su optimismo del martes luego de que una serie de señales contradictorias sobre el curso de la guerra en Oriente Medio volvieron a sembrar la incertidumbre: el ataque con drones a la refinería más grande de los Emiratos Árabes Unidos, la advertencia del gigante petrolero Saudi Aramco sobre consecuencias “catastróficas” para la economía mundial y las declaraciones del primer ministro israelí, Benjamín Netanyahu, quien aseguró que la ofensiva militar contra Irán “aún no ha terminado”.
En las primeras operaciones, el Dow Jones cedía un 0,44%, el Nasdaq fluctuaba casi sin cambios y el S&P 500 perdía 0,26%. Los tres índices habían llegado a mostrar caídas más pronunciadas en la preapertura luego de una noche en verde que parecía prever una recuperación.
Pero el detonante negativo fue el reporte de medios estatales iraníes sobre la explosión de un buque cisterna cerca de Abu Dhabi, que agravó las dudas sobre la confianza del presidente Donald Trump en que el conflicto podría terminar “muy pronto”.
A eso se sumó el ataque con drones que provocó un incendio en la zona industrial de Ruwais, en los Emiratos Árabes Unidos, y obligó a detener operaciones en la refinería más grande del complejo, operada por la compañía estatal Abu Dhabi National Oil Co. (ADNOC). La planta tiene capacidad para procesar 922.000 barriles de petróleo por día. Las autoridades de Abu Dhabi confirmaron el incendio pero indicaron que no había víctimas.
El incidente se suma a una cadena de ataques contra infraestructura energética en el Golfo Pérsico. Arabia Saudita cerró la semana pasada su mayor refinería tras un bombardeo similar, y Qatar clausuró la mayor planta exportadora de gas natural licuado del mundo.
En ese contexto, el director ejecutivo de Saudi Aramco, Amin Nasser, advirtió en una llamada de resultados que el conflicto tendría “consecuencias catastróficas” para el mercado petrolero y efectos “drásticos” sobre la economía global si se prolongaba. Nasser informó que la compañía trabaja para despachar en los próximos días alrededor del 70% de sus exportaciones habituales a través del puerto de Yanbu, en el Mar Rojo, ruta alternativa ante el bloqueo efectivo del Estrecho de Ormuz, por donde normalmente transita una quinta parte del petróleo mundial.
El crudo, que llegó a rozar los 120 dólares por barril el lunes, operaba este martes sobre los 90 dólares, luego de la caída generada por los comentarios de Trump. El petróleo de referencia estadounidense WTI cotizaba por encima de los 90 dólares por barril, mientras que el Brent internacional superaba los 93 dólares, ambos recuperando parte de las pérdidas nocturnas. Desde el inicio de la guerra, los precios acumulan una suba de alrededor del 34%.
El secretario de Defensa, Pete Hegseth, anunció desde el Pentágono que este martes será “el día más intenso de ataques dentro de Irán” desde el inicio de la guerra. Confirmó que Trump “tiene el control del acelerador” y declinó precisar si la operación está en su inicio, mitad o final. El general Dan Caine agregó que las fuerzas estadounidenses siguen atacando buques minadores iraníes y que la marina de Teherán ha sido golpeada con “artillería, cazas, bombarderos y misiles lanzados desde el mar”. Hegseth acusó además a Irán de desplazar lanzacohetes cerca de escuelas y hospitales para dificultar los ataques estadounidenses.
Netanyahu declaró este martes que la ofensiva “aún no ha terminado” e inició una nueva oleada de ataques sobre Teherán, en contraste con el tono más conciliador que Trump había adoptado un día antes al afirmar que consideraba la guerra “prácticamente completa”. Irán, por su parte, mantuvo su desafío: un portavoz de los Guardianes de la Revolución sostuvo que Teherán no permitirá que “ni un litro” de petróleo de la región llegue a Estados Unidos o sus aliados mientras continúen los ataques, y reafirmó que serán ellos quienes “determinen el fin de la guerra”.
Los mercados europeos y asiáticos habían abierto con ganancias, alentados por las palabras de Trump, pero el ánimo fue enfriándose a medida que avanzaba la jornada. El galón de gasolina en Estados Unidos subía este martes a 3,54 dólares en promedio, según el club automovilístico AAA, frente a los menos de 3 dólares registrados antes del inicio del conflicto.
Middle East
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Vietnam’s trade ministry is urging businesses to encourage employees to work from home to curb fuel consumption as the country grapples with supply disruptions and sharp price increases triggered by the U.S.-Israeli war involving Iran.
In a statement on Tuesday, the government said Vietnam has been among the nations hardest hit by the turmoil due to its heavy reliance on energy imports from the Middle East. Citing a report from the Ministry of Industry and Trade, it called on companies to «encourage work-from-home when possible to reduce the need for travel and transportation.»
Fuel prices have surged since the end of last month, with gasoline up 32%, diesel rising 56% and kerosene climbing 80%, according to data from Petrolimex, the country’s top fuel trader. Long lines of cars and motorbikes were seen at petrol stations in Hanoi on Tuesday.
The ministry also urged businesses and individuals not to hoard or speculate on fuel.
People queue to buy petrol at a petrol station after Vietnam’s trade ministry called on local businesses to encourage their employees to work from home to save fuel amid disruptions in supply and price surges triggered by the U.S.-Israeli conflict with Iran, in Hanoi, Vietnam, March 10, 2026. (REUTERS/Khanh Vu)
GAS PRICES COULD JUMP AS MIDDLE EAST TENSIONS THREATEN GLOBAL OIL SUPPLY
Prime Minister Pham Minh Chinh on Monday held calls with leaders of Kuwait, Qatar and the United Arab Emirates to secure additional fuel and crude oil supplies. The government has also removed import tariffs on fuels through the end of April in a bid to ease pressure on the market.
President Donald Trump’s strikes on Iran have made for volatile crude markets, with prices surging to $120 a barrel in the U.S. over the weekend before dipping back to just over $80 on Monday night as Trump spoke to a Republican retreat in Florida.
Prices have stabilized after Trump assured investors the Strait of Hormuz will be safe for oil tankers in the Middle East, a notorious choke point for the largely dismantled Iranian regime.
President Donald Trump addresses reporters aboard Air Force One last week as War Secretary Pete Hegseth looks on. (SAUL LOEB / AFP via Getty Images)
TRUMP IS REALIGNING WORLD ENERGY MARKETS AND THE IRAN STRIKES ARE ACTUALLY HELPING
The situation in the region remains tenuous as Iran has announced Mojtaba Khamenei as the next supreme leader, a decision that Trump told Fox News that he «was not happy» about.
«I don’t believe he can live in peace,» Trump said from Air Force One.
Iran’s Revolutionary Guard said Tuesday they would not let any oil out of the Middle East until U.S. and Israeli attacks cease, a threat that had prompted Trump to threaten to hit Iran «20 times harder» if it blocked exports.
US SIGNALS READINESS TO ESCORT TANKERS THROUGH HORMUZ AS TRAFFIC THINS BUT NO MISSION LAUNCHED
Strikes on the Iranian leadership, the IRGC, and Iranian naval vessels and oil infrastructure have roiled the markets. ( Sasan / Middle East Images / AFP via Getty Images)
Despite the defiant rhetoric from both sides, investors placed strong bets Tuesday that Trump would call off his war soon, before the unprecedented disruption it has caused to energy supplies causes a global economic meltdown.
«I’m hearing they want to talk badly,» Trump said, as the Department of War has claimed 50 Iranian naval vessels have been sunk and Trump is suggesting the war objections are weeks ahead of schedule, if not nearly «complete.»
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«It’s possible,» Trump added of engaging the new Iranian leadership, descendants of the deceased leaders, but said it «depends on what terms, possible, only possible.»
«You know, we sort of don’t have to speak anymore, you know, if you really think about it, but it’s possible,» he said.
Fox News’ Trey Yingst and Reuters contributed to this report.
world,donald trump,war with iran,finance global economy
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