President Donald Trump has seized on the government shutdown as an opportunity to reshape the federal workforce and punish detractors by threatening mass firings of workers and suggesting “irreversible” cuts to programs important to Democrats.
Rather than simply furloughing employees, as is usually done during any lapse of funds, White House press secretary Karoline Leavitt said layoffs were “imminent.” The Office of Management and Budget announced it was putting on hold roughly $18 billion of infrastructure funds for New York’s subway and Hudson Tunnel projects — in the hometown of the Democratic leaders of the U.S. House and Senate.
Thursday marked day two of the shutdown, and already the dial is turned high. The aggressive approach coming from the Trump administration is what certain lawmakers and budget observers feared if Congress, which has the responsibility to pass legislation to fund the government, failed to do its work and relinquished control to the White House.
### House Oversight Democrats Call for Investigation Over Shutdown Messaging
The Trump administration made “apparent violations of the Hatch Act, and illegal use of government resources to promote a false, partisan Republican political agenda,” wrote Rep. Robert Garcia, the top Democrat on the House Oversight Committee, in a letter to the U.S. Office of the Special Counsel.
“Messages shared by multiple Trump administration agencies in the last few days attempt to place blame for the current government shutdown on congressional Democrats and the Democratic Party,” Garcia’s letter reads, citing social media posts from department secretaries and messages on federal agency websites.
Garcia requested that the Special Counsel’s office, which is headed by an acting official and Trump appointee, “immediately investigate these likely violations of federal law,” which prohibits government agencies and officials from engaging in partisan electoral politics.
He said any probe would inform future House Democratic investigations into “any and all cases in which federal power or resources are weaponized for political reasons.”
### Hispanic Groups Criticize Use of Sombrero Memes in Shutdown Fight
In a joint response, the Hispanic Federation, Latino Victory Foundation, League of United Latin American Citizens, Mi Familia Vota, UnidosUS, and Voto Latino condemned the AI videos and memes, saying they distract the public from the issue and perpetuate Latino stereotypes.
“Targeting the Latino community is not only irresponsible — it is reprehensible and beneath the office of the presidency,” the statement said. “The troubling use of AI to amplify hateful stereotypes is not only reckless, but it serves as an act of disinformation designed to further stigmatize Latinos when tensions facing the community driven by policy and rhetoric are at an all-time high.”
### White House Postpones National Hispanic Heritage Month Event
President Trump was expected to host a gathering on Thursday afternoon to celebrate National Hispanic Heritage Month. However, the event was postponed due to the government shutdown, according to a White House official.
### White House Vows Continued Video Attacks on Democrats Until Government Reopens
“The sombreros will continue until the government reopens,” White House Deputy Communications Director Kaelan Dorr said in a post on X (formerly Twitter), sharing a video of House Democratic leader Hakeem Jeffries.
What began with a video of Jeffries wearing a sombrero, with mariachi music in the background delivering a fabricated rant, has turned into a trolling campaign led by Republicans. The GOP’s official X account and Senator Ted Cruz’s personal account shared various versions of the sombrero meme, depicting Democrats with sombreros and mustaches while playing altered versions of the 1990s Latino hit “Macarena.”
Senator Cruz wrote, “The 44 Senate Democrats who voted for Schumer’s Shutdown should know that the Sombrero posting will continue until they re-open our government. Hey Macarena.”
### Trump Administration Cancels Nearly $8 Billion in Clean Energy Grants for Blue States
The Trump administration is canceling $7.6 billion in grants that supported hundreds of clean energy projects in 16 states — all of which voted for Democrat Kamala Harris for president.
White House budget director Russell Vought announced the cuts on social media, calling it “Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled.”
The cuts are expected to impact battery plants, major hydrogen technology projects, grid upgrades, and carbon capture efforts, according to the environmental nonprofit Natural Resources Defense Council.
### U.S. Stocks Drift Near Records Amid Shutdown Uncertainty
The S&P 500 was mostly unchanged, coming off its latest all-time high. The Dow Jones Industrial Average fell 81 points (0.2%) as of 10:38 a.m. Eastern, while the Nasdaq composite gained 0.3%, heading toward its own record.
Thursday’s typical Wall Street reaction to weekly unemployment claims has been delayed due to the shutdown, with Friday’s monthly jobs report also likely postponed. This lack of economic data adds to uncertainty as investors watch for signals on the job market and the Federal Reserve’s next moves on interest rates.
### Immigration Judge Denies Kilmar Abrego Garcia’s Bid for Asylum
Kilmar Abrego Garcia, a Salvadoran national with an American wife and children who originally immigrated illegally as a teenager, had his asylum case denied for reopening by an immigration judge. He had previously been ruled unable to be deported due to threats from gangs in El Salvador.
His mistaken deportation in March made his case a rallying point for opponents of President Trump’s immigration policies. He has 30 days to appeal the decision.
### Speaker Mike Johnson Advises Democrats to ‘Just Ignore’ Trump’s Video Attacks
House Speaker Mike Johnson offered advice to his Democratic counterpart regarding President Trump’s doctored sombrero videos: “Just ignore it.”
Jeffries has called the videos “racist” and challenged Trump to address him in person. Johnson’s response highlights his balancing act between loyalty to Trump and the need to work with Jeffries to keep the House functioning.
### Johnson Says Shutdown Hands ‘Keys of the Kingdom’ to Trump
Speaker Johnson acknowledged that the shutdown grants President Trump and White House budget director Russ Vought vast power over the federal government during the funding lapse.
Blaming Democrats for turning off the legislative branch, Johnson said, “they have effectively turned off the legislative branch and handed it over to the president.” He added that Trump and Vought “take no pleasure in this.”
### White House Threatens ‘Harm’ for Democratic Constituents During Shutdown
Trump announced he would meet with budget adviser Russ Vought to discuss potential spending cuts during the shutdown. Press secretary Karoline Leavitt said, “it’s very real” and warned Democrats their constituents would suffer if they did not reopen the government.
Vice President JD Vance stated that, despite potential layoffs, federal agencies would not be targeted based on political considerations.
### House Speaker Labels Democratic Funding Bill as ‘Wild List of Partisan Priorities’
Johnson called the Democrats’ funding proposal “a wild list of partisan priorities” and urged Senate Democrats to support a Republican bill to reopen government at current spending levels.
Democrats are not pressing to pass their alternative bill but are instead focused on negotiating health care tax credits under the Affordable Care Act, which Republicans say can be addressed later this year.
Vice President Vance noted the administration’s willingness to discuss continued health care access.
### No Shutdown Negotiation Meetings Scheduled
President Trump and congressional leaders are not expected to meet soon. Congress has no scheduled action on Thursday due to a Jewish holy day observance, with senators returning Friday and the House resuming session next week.
Democrats maintain their demand to preserve health care funding and warn of insurance premium spikes if subsidies expire. The Kaiser Family Foundation estimates premiums could more than double for those purchasing coverage via the Affordable Care Act exchanges.
### Treasury Secretary Scott Bessent: Shutdown Could Hurt GDP
Treasury Secretary Scott Bessent warned on CNBC that the shutdown could negatively impact the GDP, growth, and working Americans.
However, Congressional Budget Office Director Phillip Swagel noted past shutdowns showed little immediate impact unless prolonged, though “over time, there is a negative impact on the economy.”
### Economic Data Releases Delayed by Shutdown
Critical U.S. economic data, including Friday’s jobs report and weekly unemployment claims, will be delayed due to the shutdown.
If the closure extends for weeks, this disruption could hamper the Federal Reserve’s policy decisions amid conflicting signals from inflation and labor market trends.
### Trump Administration Offers Colleges ‘Compact’ for Preferential Funding
The administration is offering nine prominent U.S. universities preferential federal funding if they agree to a 10-point “Compact for Academic Excellence in Higher Education,” which aligns with Republican goals to reduce perceived liberal influence in academia.
The memo calls for tuition freezes for five years, caps on international student enrollment at 15%, adherence to strict gender definitions, and more. Institutions include Vanderbilt, University of Pennsylvania, Dartmouth, USC, MIT, University of Texas, University of Arizona, Brown, and University of Virginia.
### Treasury Secretary Bessent Continues Discussions on Argentina Credit Swap
Bessent announced plans to welcome an Argentinian delegation to Washington to advance talks on financial support options. Argentine President Javier Milei seeks a $20 billion credit swap line from the U.S., which has drawn bipartisan criticism, especially given Argentina’s soybean exports to China.
Bessent affirmed readiness to act as needed and will monitor developments closely.
### Anti-Abortion Group Targets Additional 2026 Senate Race
Susan B. Anthony Pro-Life America plans to spend $4.5 million to defeat Roy Cooper, a Democrat running to replace retiring Republican Senator Thom Tillis in North Carolina’s 2026 Senate race.
This commitment follows similar spending pledges in Michigan and Georgia and is roughly equal to the group’s combined 2022 and 2024 political expenditures.
### Trump to Meet with Budget Director on Spending Cuts During Shutdown
President Trump announced plans to meet with White House budget director Russ Vought to discuss “temporary or permanent” spending cuts amid the shutdown.
He highlighted Vought’s role in the Project 2025 initiative, aimed at restructuring the federal government around right-wing policies. Trump denied involvement with the Project 2025 playbook during his 2024 campaign but now calls the shutdown an “unprecedented opportunity” to reorient the government as he desires.
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This evolving government shutdown continues to impact federal operations, political dynamics, and economic indicators as the standoff between the White House and congressional Democrats shows no immediate resolution.
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