As the United States government shutdown extends into its 14th day, the White House has committed to continuing layoffs while ensuring military personnel and federal law enforcement receive their pay. The Office of Management and Budget (OMB) announced plans to “batten down the hatches” in a social media post, indicating a focus on managing the ongoing situation with minimal disruption to essential services.
The OMB confirmed the initiation of reductions in force, or RIFs, that resulted in the termination of over 4,000 federal workers. This marked the first significant wave of layoffs during a government funding lapse in modern history, moving beyond the typical furloughs that have characterized previous shutdowns. While Republicans argue these terminations are a necessary consequence of the shutdown, Democrats and budget experts have disputed this claim, suggesting that layoffs are not required to conserve resources during a shutdown.
President Donald Trump has directed the Department of Defense to ensure that U.S. troops receive their paychecks despite the ongoing shutdown, which alleviates some pressure in the negotiations. The OMB’s announcement also implied that federal law enforcement would continue to be compensated, offering some relief to those affected by the shutdown. However, the majority of other federal employees are currently not receiving pay as the impasse continues.
Republican Representative Jason Smith, chair of the House Ways and Means Committee, remarked that the shutdown provides the administration with additional leverage. He stated, “He has a lot of extra levers to do things necessary to try to make pressure points not nearly as bad, and that’s exactly what President Trump is doing,” during an interview with Fox Business.
The economic impact of the shutdown is becoming increasingly pronounced. More than 250,000 federal employees have missed scheduled paychecks, with an additional 2 million expected to go unpaid in the coming days. Despite the ongoing crisis, negotiations between Democrats and Republicans have stalled, especially regarding health care subsidies that are central to the dispute.
Democrats are advocating for the extension of expiring tax credits designed to reduce health care premiums for over 22 million people, according to the health research foundation KFF. However, Republicans have insisted they will not engage in negotiations until the Democrats agree to reopen the government. House Speaker Mike Johnson criticized the Affordable Care Act, commonly known as Obamacare, labeling it “sinister” in a statement on Monday.
As the shutdown drags on, both sides remain entrenched in their positions, further complicating the path to resolution. The ongoing situation continues to create uncertainty for millions of federal employees and the broader economy, as the effects of the standoff ripple through various sectors.
