U.S. Shutdown Enters Day Two: What It Means for Federal Workers
Work News | New Stardom
U.S. Capitol Building Dome, Washington D.C. Public domain image by Carol M. Highsmith, Library of Congress.
The U.S. government entered the second day of a shutdown on Thursday after Congress failed to pass a funding bill before the October 1 deadline, forcing hundreds of thousands of federal employees to stay home and leaving others working without pay. At 12:01 a.m. Wednesday, funding for large parts of the government expired. Agencies classified workers as either essential or non-essential, with the latter ordered to stop work immediately.
While shutdowns typically result in temporary furloughs, the Trump administration has signaled a harder line. Office of Management and Budget chief Russ Vought told House Republicans that permanent layoffs could begin within days. White House officials say the cuts are intended to increase pressure on Democrats, who are refusing to accept a Republican spending plan without commitments on healthcare subsidies.
The effects are already visible. Financial regulators such as the SEC and CFTC have curtailed operations. The cybersecurity agency CISA has been reduced to a skeleton staff. Scientific research programs, environmental cleanup projects and public health work have been suspended. At the same time, essential personnel such as border agents, air traffic controllers and active-duty troops are reporting for duty without pay. By law, federal workers are guaranteed back pay once the shutdown ends, but permanent layoffs would not come with the same protections.
The administration has also frozen funds for major infrastructure and green energy projects in Democratic-leaning states, including billions earmarked for New York and California. Vice President JD Vance warned that if the shutdown continues, reductions in force will be expanded further. Congressional leaders say the Senate will reconvene Friday, but no votes are scheduled yet. Until then, roughly three-quarters of a million federal employees face growing uncertainty over their paychecks and in some cases their jobs.
What’s Next
The Senate returns Friday and may consider funding bills.
A stopgap measure could reopen the government, but disputes remain over healthcare subsidies and spending priorities.
Each additional day of shutdown increases risk of layoffs, lawsuits, and long-term disruption.
Unions and employees are expected to challenge layoffs in court.
Public opinion and economic damage could pressure both parties.
The White House estimates the shutdown is already costing billions each week in lost GDP.
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