On Thursday, President Donald Trump declared that Democrats have presented him with an “extraordinary chance” to cut federal agencies, indicating intentions to undermine his political rivals during the government shutdown that began two days ago, while attributing the cause to them.
The announcement from Trump followed a day after his administration put a hold on approximately $18 billion for two significant infrastructure initiatives in New York City and scrapped around $8 billion more for environmental projects in states that lean Democratic.
The main Democrats spearheading the shutdown negotiations, Sen. Chuck Schumer and Rep. Hakeem Jeffries, both hail from New York.
The suspension of funding was initially revealed by Russell Vought, director of the White House’s Office of Management and Budget, and not by the departments that supervise the projects.
Trump mentioned he will soon hold discussions with Vought “to figure out which of the many Democrat Agencies, most of which are a political SCAM, he suggests for cuts.”
They will also consider “if these cuts will be temporary or permanent,” Trump posted on Truth Social.
“I can’t believe the Radical Left Democrats provided me with this unprecedented chance,” he noted.
A memo from the Trump administration, released by Vought’s OMB, had warned federal agencies last week to get ready for mass layoffs should a shutdown occur.
In response to inquiries about that memo, Trump stated, “there may be firings and that’s their responsibility.”
“We could eliminate projects they favored, and those would be permanently gone,” he expressed in a recent interview with conservative news source OAN.
Leading officials from the White House — including Vought and Vice President JD Vance — indicated on Wednesday that those layoffs would commence in a matter of days.
On Thursday, White House press secretary Karoline Leavitt mentioned that the number of federal layoffs is “likely going to be in the thousands.”
The timing of Trump and Vought’s meeting remains unclear. The White House replied to a request for further details about the meeting with an automated notice attributing the shutdown to Democrats and cautioning that its communication with the press might be delayed accordingly.
Vought played a significant role in drafting Project 2025, the conservative framework for extensive reform of the U.S. government.
During his presidential campaign, Trump consistently distanced himself from Project 2025, insisting he and his campaign had “no connection to it.”
However, in his post on Thursday, Trump praised Vought as “he of PROJECT 2025 Fame.”
The federal shutdown commenced on Wednesday when a divided Congress failed to approve a bill to sustain government funding past the end of the fiscal year on Tuesday.
With Republicans controlling the White House and holding narrow majorities in both the House and Senate, they aimed to pass a temporary bill to maintain funding at existing levels until late November.
Democrats, whose backing is crucial to surmount the 60-vote Senate filibuster, are insisting that any short-term funding incorporate an extension of enhanced Obamacare tax credits, which are set to expire at the end of the year. These enhanced subsidies reduce the costs of health insurance premiums for a broader range of Affordable Care Act enrollees.
Treasury Secretary Scott Bessent remarked on Thursday morning during an appearance on CNBC’s “Squawk Box” that Democrats are negotiating like “terrorists.”
Bessent also stated he “can guarantee there’s not going to be an agreement” regarding the issue over the ACA credits.
Previous government shutdowns have led to the furlough of hundreds of thousands of federal employees, which means they are placed on unpaid leave. However, they typically guarantee back pay upon their return after the government reopens.
In response to a question on Wednesday concerning why the Trump administration is preparing to terminate workers instead of merely furloughing them, Vance replied, “We haven’t made any final decisions about the treatment of certain employees.”
“What we are suggesting is that we may need to take extraordinary actions, particularly the longer this situation persists,” he indicated.
Competing short-term funding measures put forward by both Republicans and Democrats did not pass the Senate on Wednesday.
No votes were planned for Thursday due to the Jewish holiday Yom Kippur, implying the shutdown will persist at least until Friday.
Senate Majority Leader John Thune, R-S.D., announced that his chamber will revisit the Republicans’ stopgap proposal on Friday.
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