Today : Oct 06, 2025
Politics
06 October 2025

Trump Administration Withholds Billions Amid Shutdown Standoff

Federal workers face furloughs and blue states see funding slashed as partisan battle over healthcare and executive power intensifies in Washington.

The United States is once again in the throes of a government shutdown, but this time, the crisis feels anything but routine. As the standoff drags into October 2025, the clash between President Donald Trump’s administration and congressional Democrats has escalated beyond past disputes, turning into a high-stakes battle over federal funding, institutional power, and the very nature of American democracy. With no agreement in sight, hundreds of thousands of federal workers remain furloughed, public services are disrupted, and accusations of overreach and retaliation dominate the political conversation.

The shutdown began on October 1, 2025, after Congress failed to reach a deal on a new funding bill. The Senate left Washington, DC, on October 3 without passing the necessary legislation, signaling that the impasse could last indefinitely. According to China Daily, this has left at least 750,000 of the nation’s 2.1 million civilian federal employees without work or pay, affecting agencies as varied as the Department of Education, the Department of State, and the maintenance staff in federal buildings. Essential services like Immigration and Customs Enforcement continue to operate, but the uncertainty has cast a shadow over millions of American families who depend on federal paychecks and services.

Amid the chaos, President Trump has taken a combative approach, using both policy levers and social media to advance his agenda—and, some say, to troll his opponents. On September 29, Trump shared a controversial AI-manipulated video depicting House Minority Leader Hakeem Jeffries in a sombrero and mustache alongside Senate Minority Leader Chuck Schumer, with AI-generated voices making racially charged and politically inflammatory statements. The video, as reported by The Imaginative Conservative, accused Democrats of funding illegal immigrants to boost their voter base, with the AI version of Schumer lamenting, “Nobody likes Democrats anymore.”

The next day, Trump doubled down with another AI video, this time showing Jeffries again in the same caricatured attire, accompanied by a mariachi band made up of AI-generated Trumps. The spectacle outraged Democrats, who called it racist and misleading. Jeffries himself responded, “The next time you have something to say about me, don’t cop out through a racist and fake AI video. When I’m back in the Oval Office, say it to my face.” But the Trump team seemed unfazed, with Vice-President J.D. Vance dismissing concerns as a joke during a White House briefing.

On October 3, Trump released yet another AI video, parodying Blue Öyster Cult’s “Fear the Reaper.” In it, Trump plays the cowbell, J.D. Vance is on drums, and Russell Vought—Director of the Office of Management and Budget—appears as a scythe-wielding Grim Reaper. The message was clear: with Congress at a standstill, the administration would wield its executive authority to cut waste and reshape the federal government. As journalist James Rosen told the Family Research Council, “This is a president determined to use all the levers of executive authority and power.”

The administration’s actions have gone far beyond social media antics. On September 24, Russell Vought sent a memo to federal agencies, directing them to permanently terminate some employees who would otherwise have been furloughed until Congress passed a new budget. According to The Hill, this was a marked departure from past shutdowns, where workers were typically reinstated once funding was restored. The American Federation of Government Employees (AFGE), the largest federal worker union, quickly filed suit, arguing that such firings were illegal. AFGE President Everett Kelley stated, “When the government shuts down, American families pay the price. Congress must stop playing politics with the livelihoods of federal workers and the communities they serve, end this shutdown immediately, and stop holding workers hostage.”

But the most dramatic moves have come in the form of funding cancellations and withholdings, especially targeting Democratic strongholds. As reported by China Daily and corroborated by The Imaginative Conservative, at least $28 billion in federal funds—already approved by Congress—are being withheld or canceled for 16 mainly Democrat-run cities and states, including New York, California, and Illinois. On October 1, Vought announced the cancellation of nearly $8 billion in Green New Deal funding, with 321 financial awards terminated, 26% of which were granted in the period between Election Day and Inauguration Day. “Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled,” Vought declared on X (formerly Twitter).

Chicago and New York have been hit especially hard. On October 3, Vought announced that $2.1 billion in Chicago transit projects were put on hold while the administration investigates whether contracts were awarded based on race. The same day, roughly $18 billion in New York City infrastructure projects were paused to ensure funding was not allocated based on what the administration calls “unconstitutional DEI principles.” New York Governor Kathy Hochul told The New York Times, “Without a doubt, blue states are on the front lines of the attacks, they're coming after us.” Oregon’s infrastructure funds have also been halted, with Portland potentially next in line.

Democrats and their allies see these moves as more than just tough bargaining. According to an MSNBC analysis, the Trump administration is accused of illegally removing federal employees and dismantling government programs, part of what critics call a broader attack on constitutional checks and balances. They argue that the executive branch is usurping congressional authority, ignoring court orders, and consolidating power in ways that threaten the rule of law. “The United States government is not currently operating under the Constitution,” one commentator wrote, warning of a slide toward authoritarianism.

Republicans, for their part, have blamed Democrats for the shutdown, claiming it stems from Democratic efforts to expand healthcare for undocumented immigrants and reverse Medicaid cuts. However, China Daily notes that immigrants in the US illegally are not eligible for federal healthcare programs such as the Affordable Care Act exchange or Medicaid. The real fight, according to a blue state senator cited by Fox News, is “really about health care, not illegals,” highlighting the central role of healthcare policy in the current impasse.

Senator Joni Ernst, a Republican from Iowa, has proposed an eight-page list of potential cuts totaling $2 trillion, including rescinding unspent COVID-19 funds, consolidating office space, halting mass transit projects, canceling bonuses for underperforming employees, and “right-sizing” the federal workforce. These proposals reflect a broader conservative push to use the shutdown as an opportunity to shrink what they see as a bloated federal bureaucracy.

Amidst the finger-pointing, some voices have called for restraint and unity. Republican Senator Lisa Murkowski of Alaska, a frequent Trump critic, cautioned, “We’re all Americans. We shouldn’t be targeting different areas in ways that would be viewed as punitive. That’s just not what we do.”

As the shutdown continues, the stakes remain high—not just for federal workers and the communities they serve, but for the future of American governance itself. With each passing day, the nation watches to see whether this standoff will end with compromise, deeper division, or a fundamental shift in the balance of power.