Vice President JD Vance said Wednesday that layoffs are expected within the federal government as the shutdown continues.
"We don't like that, we don't necessarily want to do it, but we're going to do what we have to — to keep the American people's essential services continuing to run," Vance said on Wednesday.
The government shut down at 12:01 a.m. Wednesday — just hours after Senate Republicans and Democrats failed to agree on a funding measure. Dueling bills each fell short of the 60 votes needed, with lawmakers largely sticking to party lines. Votes on the same measures failed on Wednesday.
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Democrats opposed the Republican-backed continuing resolution, which maintains current funding levels. They argue any deal should include health care provisions, pointing to expiring Affordable Care Act subsidies. Without action, they warn, millions of Americans could see higher premiums in the months ahead.
Republicans say they are open to negotiations but insist health care should not be part of the current funding debate.
With no resolution in sight, Scripps News learned Office of Management and Budget Director Russ Vought told House Republicans on a conference call that federal employee layoffs will begin in the next few days. He also said certain programs would be cut, including infrastructure projects in New York, the home state of Senate Minority Leader Chuck Schumer, and energy projects in more than a dozen Democratic-led states.
Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled. More info to come from @ENERGY. The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA
— Russ Vought (@russvought) October 1, 2025