INTERNACIONAL
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
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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
INTERNACIONAL
Iran war, 11 days in: US controls skies, oil surges and the region braces for what’s next
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One week into the war with Iran, U.S. officials say American and Israeli forces are moving toward «complete control» of Iranian airspace — clearing the way for deeper strikes, a broader target list and a conflict that appears to be expanding rather than winding down.
In briefings this week, Secretary of War Pete Hegseth and Joint Chiefs Chairman Gen. Dan Caine described what they called near-uncontested airspace over key corridors, a shift that allows sustained bombing operations deep inside Iran.
«We are winning with an overwhelming and unrelenting focus on our objectives,» Hegseth said in a press briefing Tuesday morning.
AFTER THE STRIKES, HOW WOULD THE US SECURE IRAN’S ENRICHED URANIUM?
Caine said U.S. forces have now struck more than 5,000 targets in the first 10 days of operations, including dozens of deeply buried missile launchers hit with 2,000-pound penetrating bombs.
The message from Washington is one of overwhelming military advantage.
But the broader picture, rising oil prices, expanding drone warfare, strikes on energy and civilian infrastructure, and regional spillover touching NATO territory, suggests a conflict that is growing in scope even as U.S. officials project confidence in its trajectory.
Leadership hardens in Tehran
Amid the intensifying conflict, Iran’s Assembly of Experts has selected Mojtaba Khamenei — son of the recently deceased Ayatollah Ali Khamenei — as the country’s new supreme leader, consolidating authority within the clerical establishment and the Islamic Revolutionary Guard Corps at a pivotal moment.
The succession, only the second since the 1979 revolution, signals continuity rather than recalibration in Iran’s posture. Mojtaba Khamenei had long been viewed as a potential successor and is closely aligned with hard-line factions inside Iran’s security apparatus.
President Donald Trump criticized the selection, saying the leadership change would not alter U.S. objectives and suggesting it reflects the same entrenched power structure Washington has sought to weaken. The administration has made clear that military operations will continue regardless of who occupies the supreme leader’s office.
Rather than opening a diplomatic off-ramp, the transition appears to reinforce the likelihood of a prolonged confrontation.
‘Uncontested airspace’
Hegseth said Tuesday that the U.S. and Israel had achieved «total air dominance» over Iran and were «winning decisively with brutal efficiency.»
«That doesn’t mean they won’t be able to project,» Hegseth said. «It doesn’t mean our air defenders still don’t have to defend. They do. But that is strong evidence of degradation.»
«Most of their higher-end surface-to-air missile systems are not factors at this point in time,» Caine said.
«Fighters are moving deeper with relative impunity,» he added, noting there is «always some risk.»
One week into the war with Iran, U.S. officials say American and Israeli forces are moving toward «complete control» of Iranian airspace. ( Sasan / Middle East Images / AFP via Getty Images)
Adm. Brad Cooper, head of the U.S. military’s Central Command, also reported that Iranian ballistic missile launches had dropped by roughly 90% from the opening days of the conflict, while drone attacks had fallen by more than 80%, attributing the decline to sustained strikes on launchers and infrastructure.
Still, officials have cautioned that air superiority does not mean every threat can be stopped. Iranian missiles and drones continue to be launched, and some have required interception across the region.
A shift in munitions and message
Hegseth said the campaign is transitioning from expensive standoff weapons like Tomahawk cruise missiles to 500-, 1,000- and 2,000-pound precision gravity bombs — a shift he said reflects confidence that Iranian surface-to-air missile systems have been suppressed in key areas.
He described the U.S. stockpile of such bombs as «nearly unlimited» and warned that Washington’s timeline «is ours and ours alone to control.»
The emphasis on gravity bombs is more than rhetorical. It signals a move toward sustained, high-tempo operations designed not only to hit active threats but to degrade Iran’s ability to regenerate its missile force.
US SIGNALS READINESS TO ESCORT TANKERS THROUGH HORMUZ AS TRAFFIC THINS, BUT NO MISSION HAS BEEN LAUNCHED
Drones redefine the fight
Even as missile launches decline, unmanned systems remain central to the war.
Iran has leaned heavily on drones — including Shahed-style loitering munitions — to strike energy facilities, pressure U.S. bases and disrupt shipping near the Strait of Hormuz. Compared to ballistic missiles, drones are cheaper and easier to deploy in volume, allowing Tehran to sustain pressure despite losses elsewhere.
In response, the United States has deployed a Ukraine-tested counter-drone interceptor system to the region. Ukrainian specialists, drawing on experience defending against Iranian-designed drones used in the Russia-Ukraine war, are assisting in strengthening base protection.
The drone fight underscores a key dynamic: while U.S. forces may dominate the skies, lower-cost unmanned systems can still impose risk and strain air defenses.
Energy at risk
The Strait of Hormuz — through which roughly 20% of the world’s oil and major liquefied natural gas shipments transit — has become one of the most consequential flashpoints of the war.
Drone attacks and Iranian threats sharply have reduced commercial traffic, driving up insurance costs and forcing some vessels to reroute. Oil prices have climbed above $100 per barrel amid fears that disruptions could persist.
Israeli strikes on Iranian oil facilities, and Iran’s retaliatory targeting of regional energy infrastructure, signal that energy assets are now active targets. Reports of strikes affecting water and desalination plants further suggest the war is expanding beyond strictly military sites.
Iran’s Assembly of Experts has selected Mojtaba Khamenei — son of the late Ayatollah Ali Khamenei — as the country’s new supreme leader. (Photo by Reza B / Middle East Images / AFP via Getty Images)
If instability in Hormuz stretches for weeks, analysts warn, global energy markets could tighten quickly, translating into higher gasoline prices and renewed inflation pressure in the United States.
Trump warned Monday that Iran will be hit «20 times harder» than it already has if it threatens ships in the Strait.
NATO proximity and regional backlash
The war has edged closer to NATO territory. Two Iranian ballistic missiles were intercepted near Turkish airspace, raising the risk of broader alliance involvement.
Iran has also struck Azerbaijan, drawing sharp condemnation from Baku and angering Turkey, Azerbaijan’s closest ally. Notably, Iran has not seen a unified regional bloc mobilize in its defense, highlighting its relative diplomatic isolation even as it escalates militarily.
Industrial mobilization
Despite Hegseth’s assertion that certain offensive munitions are plentiful, sustaining air and missile defense operations is resource-intensive, and inventories of high-end interceptors were already under strain before the conflict began.
Iran has attempted to degrade radar systems tied to platforms such as THAAD and Patriot batteries. (Reuters/U.S. Army/Capt. Adan Cazarez)
Iran has attempted to degrade radar systems tied to platforms such as THAAD and Patriot batteries. While U.S. commanders say launch rates have declined sharply, interceptors are expensive and produced in limited quantities.
Trump convened major defense contractors last week to press for accelerated production of interceptors and related systems. Expanding output could require congressional funding if the campaign continues at its current pace.
The battlefield now extends beyond launch sites and into supply chains.
Rising casualties
The Pentagon has confirmed seven U.S. service members have been killed and eight seriously injured in Iranian strikes.
In Iran, the U.S. claims over 50 top Iranian leaders, including Supreme Leader Ali Khamenei, have been taken out. Iran claims more than 1,000 people have been killed in the strikes and approximately 175 people, including many schoolchildren, were killed in an attack on a girls’ elementary school in Minab.
No group has claimed responsibility, and investigations are ongoing.
The incident has intensified scrutiny over civilian protection as the conflict widens.
No quick off-ramp
A little more than one week in, the trajectory points toward expansion rather than containment.
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U.S. officials project confidence in air dominance and sustained strike capacity. Iranian leadership has consolidated under a hard-line successor. Energy markets are volatile. Drone warfare continues to test defenses. The conflict has brushed NATO territory and struck civilian infrastructure.
The central question is how far the conflict will spread, and whether military momentum can outpace the economic and geopolitical costs mounting across the region.
war with iran,iran,conflicts defense,middle east foreign policy,energy
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