Washington: US President Donald Trump on Thursday warned that the ongoing government shutdown could lead to permanent layoffs, escalating his blame game with Democrats as the funding crisis enters its second day. The shutdown, the first since 2019, has shuttered key federal services and furloughed hundreds of thousands of workers across the country.
Trump blames Democrats for shutdown
In an interview with conservative broadcaster One America News (OAN), Trump defended his uncompromising stance, claiming Democrats in Congress were solely responsible for the impasse.
“There could be firings, and that’s their fault,” he said, referring to a memo circulated by the Office of Management and Budget that raised the possibility of permanent job cuts. He added that he could cut projects Democrats favoured: “I am allowed to cut things that should have never been approved in the first place and I will probably do that.”
Earlier, Trump described the funding lapse as a “Democrat-forced closure” on his Truth Social account, urging Republicans to use the shutdown as an opportunity to eliminate “waste and fraud.”
Federal services affected
The shutdown, which began early Wednesday after lawmakers failed to reach a funding deal, has led to the closure of major national landmarks, including the Liberty Bell in Philadelphia and Pearl Harbor in Hawaii.
Up to 750,000 federal workers are facing furloughs, while millions more could see delayed pay if the deadlock continues. Non-essential services have been halted, while critical functions such as military operations and air traffic control remain operational.
Tariff revenues and economic risks
Amid the crisis, Trump argued that revenue from his tariff policies could offset the mounting costs. He claimed annual tariff collections could reach $1 trillion, a sum he said would help pay down the government’s debt, projected to climb towards $38 trillion. He suggested that some proceeds could be returned to Americans in the form of rebate checks.
However, economists warn that prolonged shutdowns risk damaging economic growth, delaying federal contracts, and undermining confidence in Washington’s fiscal management.
Political backdrop
The deadlock stems from a dispute over expiring Affordable Care Act (ACA) subsidies. Democrats are pushing for an extension of the subsidies, while Republicans are demanding a “clean” funding bill without what they call policy riders.
Trump hinted at broader political stakes, tying the standoff to his long-term agenda. Looking ahead to the 2026 midterm elections, he said he had “big plans” and would support Republican candidates. “You’re going to be very happy with the job we’re going to do,” he told OAN.
His comments came against the backdrop of heightened political tensions. Trump has survived two assassination attempts since his 2024 campaign and recently mourned the killing of conservative activist Charlie Kirk, a key ally.
White House signals tough measures
White House officials have suggested that infrastructure projects in Democratic districts could face cuts if the shutdown persists. The rhetoric has drawn criticism from Democrats, who accuse the administration of using the budget crisis as a political weapon.
Prime Minister Keir Starmer of the UK, in an unrelated press appearance, remarked that US instability “always carries ripple effects globally,” echoing concerns about the broader economic fallout.
Outlook
As the standoff drags on, pressure is mounting on both parties to negotiate. Markets are closely watching developments, with fears that a protracted shutdown could deliver a heavy blow to the US economy.
For now, Trump appears to be using the crisis to rally his base, while Democrats remain firm on their demand to protect healthcare subsidies. With no compromise in sight, federal employees and ordinary Americans bear the brunt of the latest Washington gridlock.