Trump Threatens Cuts as Shutdown Standoff Deepens

• Oct 03, 2025

President Donald Trump has said he will work with his budget director to decide which so-called “Democrat Agencies” to cut as the U.S. government shutdown stretched into its third day, with no sign of compromise between Republicans and Democrats.

Speaking on Thursday, Trump suggested Republicans should take advantage of the moment to “clear out dead wood,” while dismissing Democratic demands to attach healthcare subsidies to a funding bill. On Capitol Hill, both parties continued to trade blame for the failure to keep federal agencies running.

The shutdown has already forced hundreds of thousands of federal employees to stay home on unpaid leave, while others deemed “essential” reported to work without pay. Federal attractions showed mixed effects: some museums and monuments closed, while others, including the Statue of Liberty, remained open.

Analysts said neither party is likely to shift position until ordinary Americans start feeling significant impacts. The Office of Management and Budget (OMB), led by Russell Vought, is now responsible for identifying which agencies and employees are affected. On the shutdown’s first day, the White House said it had frozen or cancelled billions of dollars in projects tied to Democratic states, including $18 billion earmarked for infrastructure in New York, home to Senate leader Chuck Schumer and House Democratic leader Hakeem Jeffries.

Resolving the standoff will require cooperation in the Senate, where Republicans need eight Democrats to vote with them and Democrats need 13 Republicans. On Wednesday, only three Democrats sided with Republicans in a failed attempt to pass a funding bill. Another vote is scheduled for Friday afternoon, though the parties remain deeply divided. Republicans insist on passing a “clean” funding measure, while Democrats want health insurance subsidies for low-income families extended.

The political rhetoric has grown sharper. House Speaker Mike Johnson called Democrats “selfish” and labeled the standoff a “Democrat shutdown,” rejecting any negotiations on subsidies. Jeffries countered that Republicans were blocking healthcare access and said Trump’s threats to cut federal workers were hollow, noting layoffs had already been happening.

Public opinion appears split along party lines. Pollster Lee Miringoff said most Democrats and Republicans blame each other, while 41% of independents believe both sides are at fault. He warned that anger will build if people begin to feel the shutdown’s economic and social costs directly.

About 750,000 federal workers are expected to be furloughed, according to the Congressional Budget Office. Essential staff, including over 200,000 law enforcement officers, TSA workers, and air traffic controllers, continue to work without pay. Though air travel is unaffected for now, sick calls during the last shutdown eventually caused airport delays.

Meanwhile, tourists are encountering closures at federal museums and historic sites. Federal Hall in Manhattan, where George Washington took the oath of office in 1789, shut its doors. But the Statue of Liberty and Ellis Island remain open, which the Department of the Interior credited to Trump’s leadership. The Smithsonian museums in Washington, D.C., have said they can remain open for about a week before funding runs out.

As the shutdown drags on, both parties are under growing pressure to break the deadlock, but neither side has yet shown willingness to concede ground.