The U.S. government shutdown entered its second day Thursday as President Donald Trump escalated political tensions, vowing to permanently cut funding for what he labeled “Democratic agencies.” The move signals a sharp shift in the administration’s approach, blending fiscal policy with political warfare.

In a fiery post on Truth Social, Trump said he would meet with Budget Director Russ Vought to consider “temporary or permanent” spending cuts that could reshape federal operations and punish Democratic priorities.

The statement underscores Trump’s willingness to use the 2025 government shutdown as leverage to advance his broader goal of restructuring the federal government—an effort reminiscent of the controversial Project 2025 plan developed by the Heritage Foundation.

Unlike previous shutdowns, the Trump administration is preparing not only to furlough federal workers but also to implement permanent layoffs.

White House Press Secretary Karoline Leavitt said Thursday that “thousands” of federal positions could be eliminated if Democrats refuse to approve Trump’s spending proposals.

Roughly 750,000 federal employees are already without pay as the shutdown halts operations across multiple departments, including the EPA, Department of Education, and Transportation. Traditionally, furloughed employees return to work with back pay—but Trump’s new threat suggests irreversible cuts could be on the table.

In a series of policy moves, Budget Director Russ Vought announced the suspension of $18 billion in infrastructure funding, including the Hudson River rail tunnel and Second Avenue Subway—key projects in New York, home state of Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.

Additionally, Vought said the administration is canceling $8 billion in green energy projects primarily located in states with Democratic senators.

Democratic leaders blasted the actions as “political retaliation,” accusing Trump of weaponizing the shutdown to target opponents.

The Senate did not meet Thursday due to the Yom Kippur holiday, pushing the next potential vote to Friday. To pass a funding bill, Republicans would need five Democratic votes in the 100-member chamber—a hurdle that appears unlikely as Democrats demand protection for healthcare and climate funding.

House Speaker Mike Johnson urged the Senate to continue negotiations through the weekend and blamed Democrats for “turning off the legislative branch.”

With no compromise in sight, the 2025 government shutdown could drag into mid-October, intensifying pressure on both sides.

The Congressional Budget Office (CBO) estimates that 750,000 federal employees will lose approximately $400 million in wages per day during the shutdown. The prolonged closure could weaken U.S. GDP, slow consumer spending, and disrupt supply chains.

Past shutdowns, the CBO noted, have led to reduced demand in the private sector, as federal spending delays ripple through the economy. While some of the economic losses may be recouped once government operations resume, the short-term impact on families and businesses could be severe.

Observers say Trump’s latest rhetoric closely mirrors the goals of Project 2025, a conservative blueprint to consolidate presidential power and overhaul the civil service. Although Trump distanced himself from the initiative during his 2024 campaign, Thursday’s remarks suggest renewed alignment.

Critics argue the plan threatens the independence of federal agencies and risks turning the public workforce into a partisan arm of the executive branch.

As the 2025 shutdown stretches on, millions of Americans face delayed paychecks, halted projects, and rising uncertainty. Economists warn that prolonged gridlock could undermine recovery efforts and shake public confidence.

With both sides entrenched—Republicans demanding deep spending cuts and Democrats insisting on protecting key programs—the political standoff shows no signs of easing.

For federal workers and the broader U.S. economy, the stakes couldn’t be higher.

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