President Donald Trump has issued a stark warning to congressional Democrats amid a prolonged government shutdown, threatening significant cuts and layoffs across federal agencies if no funding deal is reached. The standoff, now in its second week, is largely rooted in disagreement over healthcare spending: Democrats insist on extending Affordable Care Act subsidies and Medicaid reimbursement expansions, while the White House opposes these demands on grounds of fiscal restraint.
During a joint appearance with Canadian Prime Minister Mark Carney, Trump signaled his readiness to commence workforce reductions “within days” unless Congress acts. He framed the shutdown as an opportunity to eliminate what he calls “wasteful or inefficient” programs — particularly those favored by Democrats. While he did not name specific agencies, administration officials are reportedly drafting lists of departments and programs eligible for cuts.
Democratic leaders sharply criticized the threat. Senate Minority Leader Chuck Schumer accused the administration of exploiting the shutdown to push through policy changes lacking legislative backing. Unions representing federal employees warned that the looming prospect of permanent job losses was destabilizing and unfair.
On the ground, federal workers are already feeling the effects: many are furloughed or required to work without pay. The IRS announced it will furlough about 34,000 employees, nearly half its workforce. Meanwhile, there is growing tension over whether furloughed workers will still receive back pay — a standard practice in previous shutdowns — with the White House’s Office of Management and Budget issuing a memo suggesting back pay is not guaranteed unless Congress explicitly provides for it.
As both sides dig in, the outcome remains uncertain. The Trump administration is signaling readiness for sweeping cuts and workforce restructuring; Democrats are pushing for protection of healthcare funding; and federal employees and agencies brace for consequences if the shutdown continues.
