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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.
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At least two victims have died and three others are in a serious condition after a car and knife attack outside a synagogue in Manchester in the United Kingdom, authorities said.
Greater Manchester Police said officers were called at about 9:30 a.m. to the Heaton Park Hebrew Congregation Synagogue after a vehicle was driven into pedestrians and at least one person was stabbed. Armed police declared a major incident and opened fire minutes later, striking a person believed to be the suspect.
Police said they cannot currently confirm if the suspect is dead due to safety issues surrounding suspicious items on his person. The bomb disposal unit has been called and is now at the scene.
Emergency services at the scene of a stabbing at Heaton Park Hebrew Congregation synagogue, in Crumpsall, Manchester, England, on Thursday Oct. 2, 2025. (Peter Byrne/PA via AP)
MULTIPLE PEOPLE KILLED IN SHOOTING ATTACK ON JERUSALEM BUS
Paramedics arrived at the scene minutes later and were seen treating the victims.
Police declared «PLATO,» a national code-word used by police and emergency services when responding to a «marauding terrorist firearms attack» or other large-scale incidents involving significant threats to public safety.
A large number of people were worshiping at the synagogue at the time of the incident. They were held inside while the immediate area was made safe but have since been evacuated, police said.
The attack came on Yom Kippur, the holiest day in the Jewish calendar which ends later today.
SHOOTING AT CAPITAL JEWISH MUSEUM HIGHLIGHTS RISING WAVE OF ANTI-JEWISH HATE CRIME
Andy Burnham, the mayor of Greater Manchester, said with a «degree of reassurance,» that the incident is now over.
«It is believed that the offender is deceased, although it’s not confirmed,» he told the BBC.
A Greater Manchester Police spokesperson acknowledged the significance of the timing of the attack.
«We know today’s horrifying attack, on the Jewish community’s holiest day, will have caused significant shock and fear throughout all of our communities,» the spokesperson said in a statement.
The spokesperson said a member of the public prevented the suspect from entering the synagogue.
Emergency services on scene after a car and knife attack outside Heaton Park Hebrew Congregation Synagogue in Manchester, England, Oct. 2, 2025. (Peter Byrne/PA via AP)
U.K. Prime Minister Keir Starmer is returning early from a visit to Denmark and will chair what he called an «emergency meeting» in London with cabinet ministers and officials.
Starmer said additional police assets are being deployed at synagogues across the country.
A police officer secures the scene outside Heaton Park Hebrew Congregation Synagogue in Manchester, England, Thursday, Oct. 2, 2025, after a car and knife attack injured four people. Officers shot a man believed to be the suspect. (Paul Currie / AFP)
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«I’m appalled by the attack at a synagogue in Crumpsall,» Starmer wrote on X.
The fact that this has taken place on Yom Kippur, the holiest day in the Jewish calendar, makes it all the more horrific. My thoughts are with the loved ones of all those affected, and my thanks go to the emergency services and all the first responders.»
The Associated Press contributed to this story.
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MADISON, N.J. – EXCLUSIVE: The nation’s capital isn’t the only battlefield in the blame game between Democrats and Republicans over the first federal government shutdown in seven years.
The verbal crossfire is also playing out on the campaign trail in New Jersey, which is home to one of only two elections for governor across the nation this year.
Republican gubernatorial nominee Jack Ciattarelli, in an exclusive national interview with Fox News Digital, pointed fingers at his Democratic rival, Rep. Mikie Sherrill.
After Sherrill, a four-term congresswoman, charged in a statement that «Washington Republicans have once again shown they’re willing to turn their backs on the American people in order to blindly follow Donald Trump’s demands,» Ciattarelli criticized his opponent in the combustible, competitive, and high-profile ballot box showdown.
FIVE RACES TO WATCH WITH FIVE WEEKS TO GO UNTIL ELECTION DAY 2025
Jack Ciattarelli, the Republican nominee for governor in New Jersey, takes part at a candidate forum at Fairleigh Dickinson University, on Oct. 1, 2025 in Madison, N.J. (Paul Steinhauser – Fox News)
«There’s nothing my opponent won’t blame on President Trump. As I like to say, if you get a flat [tire] today, it’s President Trump’s fault,» Ciattarelli argued, in a sit-down interview after taking part in a candidate forum hosted by Fairleigh Dickinson University.
With neither Trump and the Republican majority in Congress, nor congressional Democrats willing to lower the temperature, the government shut down early Wednesday morning.
BLAME GAME OVER SHUTDOWN INTENSIFIES
Democrats insisted that any agreement to prevent a government shutdown, or now to end the shutdown, must extend tax credits for the Affordable Care Act (ACA) beyond the end of this year. Those credits, which millions of Americans rely on to reduce the costs of health care plans under the ACA, which was once known as Obamacare, are set to expire unless Congress acts.
But most Republicans oppose the extension of the credits and argue that the Democrats’ demands would lead to a huge increase in taxpayer-funded healthcare for immigrants who entered the country illegally.
Sherrill, along with every other House Democrat except Rep. Jared Golden of Maine, voted against a GOP stopgap measure that would have temporarily averted the shutdown.
A closed sign stands in front of the National Archives on the first day of a government shutdown, Wednesday, Oct. 1, 2025, in Washington. (Julia Demaree Nikhinson – AP Photo)
Ciattarelli, pointing to his rival’s vote in Congress, said, «I do know that there’s a bipartisan group of congresspeople that are trying to keep the government open. My opponent has decided not to be part of that bipartisan group, and she voted no. And so here we are.»
Sherrill, who has repeatedly linked Ciattarrelli to Trump, placed the shutdown blame squarely on Trump’s shoulders, writing in a social media post, «This is precisely the extreme MAGA agenda that @Jack4NJ wants to bring to NJ.»
TRUMP LOOMS LARGE OVER THIS CRUCIAL RACE FOR GOVERNOR
And taking aim at congressional Republicans in a statement from her House office, Sherrill argued that «instead of working with Democrats to lower costs, protect health care, and support working people, Washington Republicans bent the knee to Donald Trump, shutting down the government in the process.»
Democratic gubernatorial nominee Rep. Mikie Sherrill of New Jersey responds to questions during the first general election debate with Republican opponent Jack Ciattarelli. Sunday, Sept. 21, 2025, in Lawrenceville, N.J. (AP Photo/Noah K. Murray)
With just over one month to go until Election Day in New Jersey — and early voting taking place Oct. 25-Nov. 2 — a new Fox News poll indicated Sherrill holding an upper single-digit lead over Ciattarelli.
But Ciattarelli, a former state lawmaker and a certified public accountant who started a medical publishing company before getting into politics, touted that «the energy is off the charts, and the fact that I’m being endorsed by Democratic mayors around the state says a whole lot about people wanting change here in the state of New Jersey.»
Hours into the shutdown, the Trump administration announced the freezing of billions of dollars in federal funding for two infrastructure projects, including the Gateway Project, which would build a new train tunnel under the Hudson River connecting New Jersey and New York.
Sherrill quickly slammed the move and pointed fingers at Ciattarelli. She pledged to «fight tooth and nail to complete this essential infrastructure project for New Jersey. Jack Ciattarelli will not. He’s refused to name a single area where he disagrees with Trump.»
But Ciattarelli campaign senior strategist Chris Russell shot back in a statement, saying, «Make no mistake, Mikie Sherrill owns this shutdown and is responsible for any negative impacts on [the] Gateway tunnel project and other NJ priorities.»
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The two candidates will face off next week in their second and final debate before voters head to the polls in the election to succeed term-limited Democratic Gov. Phil Murphy.
Asked about his debate game plan, Ciattarelli said he would «be very, very specific with policy proposals that fix our problems here in New Jersey, and point out every single time she doesn’t answer the questions.»
Republican candidate Jack Ciattarelli, left, shakes hands with Democratic candidate for governor Mikie Sherrill, right, before a debate on Sunday, Sept. 21, 2025, in Lawrenceville, N.J. (AP Photo/Noah K. Murray)
Gubernatorial candidates in New Jersey run on a party ticket and Democrats on Wednesday were spotlighting a comment by the GOP lieutenant governor nominee Jim Gannon, the Morris County Sheriff, in a debate earlier this week that «taxes are on the table.»
Asked about his running mate’s comment, Ciattarelli emphasized that «there will be no tax increases under Governor Ciattarelli. And I would put forth a very specific plan on how to decrease the income tax and the property tax here in New Jersey.»
The race was rocked last week after a New Jersey Globe report revealed that Sherrill’s military records indicated that the United States Naval Academy blocked her from taking part in her 1994 graduation amid the cheating scandal.
Sherrill claims that Ciattarelli is going on a «witch hunt» over her improperly released military records, which raised questions about her possible involvement in a cheating scandal that rocked the U.S. Naval Academy three decades ago.
«He has been caught with his hand in the cookie jar, if you will. He’s now trying to divert from that,» Sherrill told reporters on Tuesday following a campaign event in Wildwood Crest, New Jersey.
Ciattarelli and his campaign are calling on Sherrill, who went on to pilot helicopters during her military career after graduating from the Naval Academy, to release her military records to explain why she was prevented from attending her graduation ceremony.
But a separate report from CBS News revealed that the National Personnel Records Center, which is a branch of the National Archives and Records Administration, mistakenly released Sherrill’s improperly redacted military personnel files, which included private information like her Social Security number, to a Ciattarelli ally.
«To have a guy I’m running against, it will stop at nothing, it will stop at nothing, who will illegally obtain records. It’s just beyond the pale,» Sherrill, who served as a federal prosecutor before winning election to Congress, charged last week.
The National Archives, in a letter last week, apologized to Sherrill, saying the improper release was due to a government worker’s error over a legal records request.
Following the breach of the records, Sherrill’s campaign sent cease-and-desist letters to the National Archives and to Ciattarelli’s campaign, as well as to Ciattarelli’s top strategist, Chris Russell and Nicholas De Gregorio, who is described by Sherrill’s team as «an agent of the campaign working at the direction of» Russell.
The Sherrill campaign on Monday launched a digital ad taking aim at Ciattarelli.
«They broke the law to attack a veteran,» the narrator in the spot charged.
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Asked about the ad, Ciattarelli charged in his Fox News Digital interview that Sherrill «did something at the Naval Academy that caused them to punish her. She wasn’t allowed to participate in the graduation. Her name is not listed in the commencement exercise program. She was, in fact, punished. She needs to come clean on what she did to be punished by the Naval Academy.»
And asked about the release of her military files and criticism from Democrats of possible dirty tricks, Ciattarelli said «somebody filed a Freedom of Information Act request, and it was fulfilled by the National Archives. And so it’s all a smokescreen. The information that came out of there is what the National Archives provided, but this is a smokescreen and spin on what really took place at the Naval Academy, and that’s her punishment.»
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INTERNACIONAL
El dólar sigue planchado en Uruguay: exportadores alertan por posible fuga de empresas de servicios
La cotización del dólar en Uruguay volvió a cerrar el mes de septiembre a la baja y ya son ocho los meses que la divisa estadounidense pierde valor. En la plaza mayorista, el dólar cerró nuevamente por debajo de los 40 pesos uruguayos ($ 38,845), aunque en el primer día de octubre registró un leve aumento (de 0,08%). La cotización es seguida de cerca con preocupación por el sector exportador, que advierte por una pérdida de competitividad del país.
Salvo en julio, cuando el billete verde se valorizó, la cotización ha caído en todos los meses de 2025 en la comparación punta a punta (la de inicio de mes con la del final), consignó el diario local El País. En lo que va del año, la divisa estadounidense se ha desvalorizado un 9,5%.
En el gobierno argumentan que la caída del dólar responde principalmente a causas externas. En Brasil, que es el principal mercado de referencia para Uruguay, su cotización tuvo la mayor caída mensual en septiembre y también presenta un retroceso grande en lo que va del año.
A mediados de mes, el presidente del Banco Central del Uruguay (BCU), Guillermo Tolosa, se reunió con los exportadores y la cotización del dólar fue uno de los principales temas del encuentro.
“Es siempre un factor de preocupación porque las exportaciones se venden en dólares y esos dólares rinden cada vez menos para pagar todas las cuentas en pesos, ya sea salarios, tarifas públicas, impuestos”, explicó a Canal 5 la economista de la Unión de Exportadores María Laura Rodríguez.
Hubo, a su vez, una “alerta especial” para las empresas que exportan servicios. “Al no tener una infraestructura física, podrían cambiar de país. Muchas de ellas tienen dependencias en distintos países y pueden comparar los costos de trabajar en un país y en otro. Vienen planteando que las casas matrices les dicen: ‘Defendeme por qué Uruguay’. Están teniendo cada vez menos elementos por un tema básicamente de competitividad”, señaló la economista.
Para el sector privado, este factor es una “señal de alerta o amarilla” y llamó a trabajar junto al gobierno en la solución.
Rodríguez dijo que el problema se da cuando la cotización cae más en Uruguay que en el resto del mundo. Sugirió que el BCU debería tomar decisiones respecto a la tasa de la política monetaria, que permanece “relativamente alta”. “Esto hace que los inversores se coloquen en pesos y vendan sus dólares. Ese es un factor”, señaló.
En ese encuentro, el presidente del Banco Central enfatizó que la “misión fundamental” de la autoridad monetaria en Uruguay es que el país “deje de encarecerse al ritmo que lo hacía”. Y planteó que ese objetivo se está cumpliendo. “La inflación se encuentra cerca de la meta y de forma sostenible”, expresó Tolosa, según un comunicado oficial difundido tras el encuentro. El jerarca ha destacado que Uruguay logró que la inflación no vaya de la mano de la cotización del dólar.
El BCU reconoció que la desinflación de Uruguay perjudicó la competitividad del sector productivo, pero sostuvo que ese proceso concluyó. “La inflación ha alcanzado la meta y las expectativas se encuentran en mínimos históricos. El Banco Central ha venido bajando las tasas de interés y se dirige hacia una política monetaria neutral”, argumentó.
El comunicado de la reunión señala que la baja del dólar ha seguido una tendencia global.
“La depreciación medida de forma anual fue, hasta julio, sistemáticamente superior a la inflación. El cambio así ‘adelantó’ un año y medio a la inflación, un bienvenido contraste con los últimos 25 años, donde siempre la depreciación generalmente se ‘atrasó’ con respecto a la inflación salvo por períodos muy breves”, señaló el BCU.
La autoridad monetaria aseguró que, si se compara el peso contra otras monedas incorporando los diferenciales por inflación, también hay mejoras en la competitividad respecto a lo que sucedió entre 2022 y 2024.
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