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The US government is at risk of a shutdown as Congress fails to pass a funding bill before October 1. President Trump has threatened mass layoffs amid partisan disagreements over spending priorities, with essential services continuing but many federal workers furloughed. The deadlock echoes past shutdowns, with political blame-shifting ongoing.
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At 12:01 a.m. EDT on October 1, 2025, the US federal government entered a shutdown after Senate Democrats and Republicans failed to pass stopgap funding. The impasse centers on extending expiring Obamacare healthcare subsidies. President Trump threatened irreversible job cuts targeting Democrats during the shutdown, which affects hundreds of thousands of federal workers and suspends many non-essential services.
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The Trump administration has canceled approximately $8 billion in clean energy and infrastructure projects, primarily affecting Democratic-leaning states, amid ongoing government shutdown negotiations. The move targets projects in California, New York, and other states, with officials citing economic viability and national energy needs as reasons for the cuts.
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Federal agencies are implementing layoffs amid ongoing government shutdown, with courts scrutinizing the administration's actions. Labor unions seek to block the layoffs, which are part of a broader political standoff over funding and healthcare. The shutdown has caused widespread disruption and uncertainty for federal workers.
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As of October 22, 2025, the US government shutdown has entered its third week, with President Trump authorizing the Pentagon to use $6.5 billion from military research funds to pay active-duty troops, bypassing congressional approval. This unilateral move aims to prevent military pay delays but has drawn criticism from lawmakers. The shutdown continues amid stalled negotiations over healthcare subsidies and federal funding.