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Government shutdown updates: Leavitt says Trump exploring cutting aid to Portland

"We will not fund states that allow anarchy," she told reporters.

Last Updated: October 4, 2025, 8:50 AM EDT

The federal government remains closed amid a bitter impasse on Capitol Hill over competing congressional spending bills.

President Donald Trump and Republicans have cast blame for the shutdown on Democrats' health care demands, while Democrats insist Republicans need to negotiate.

The Trump administration has threatened mass layoffs of some federal workers during the shutdown.

Key Headlines

Here's how the news is developing.
Oct 02, 2025, 8:35 AM EDT

Trump to meet with OMB director Thursday to determine which federal agencies to cut

On day two of the government shutdown, President Donald Trump said he has a meeting scheduled Thursday with OMB Director Russ Vought to determine which agencies he "recommends" be cut-- either temporarily or permanently.

In his post, Trump references Vought through the lens of 'PROJECT 2025 Fame' — suggesting that the director, who was a key architect of the controversial federal policy agenda, could take inspiration from that blueprint, which had a vision for mass federal layoffs.

"I have a meeting today with Russ Vought, he of PROJECT 2025 Fame, to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut, and whether or not those cuts will be temporary or permanent," Trump wrote on his social media platform.

He called the shutdown an "unprecedented opportunity."

The Capitol is seen on the first day of a government shutdown, in Washington, Oct. 1, 2025.
J. Scott Applewhite/AP

--ABC News' Isabella Murray

Oct 02, 2025, 5:29 AM EDT

Senate to return Friday after Yom Kippur

The Senate will be out in observance of Yom Kippur on Thursday after it adjourned Wednesday without reaching a deal to end the shutdown.

U.S. Capitol building on the first day of a government shutdown, at the U.S. Capitol, in Washington, October 1, 2025.
Julia Demaree Nikhinson/AP

The next votes scheduled for Friday afternoon, when the Senate is expected to once again take up two bills related to government funding: the Democratic proposal that includes health care provisions and the Republican stopgap bill.

-ABC News' Allison Pecorin

Oct 02, 2025, 4:28 AM EDT

Trump calls for culling 'dead wood' in government amid shutdown

President Donald Trump on Wednesday evening called on Republicans to use the first shutdown in almost 7 years to cull potential "dead wood" from within the federal government.

"Republicans must use this opportunity of Democrat forced closure to clear out dead wood, waste, and fraud," Trump said on social media, a quote later shared by official White House accounts.

President Donald Trump answers questions while childhood cancer survivors and their families gather in the Oval Office at the White House, September 30, 2025 in Washington.
Win McNamee/Getty Images

"Billions of Dollars can be saved," Trump added.

The dome of the U.S. Capitol is seen at sunrise, Oct. 1, 2025, in Washington.
Mark Schiefelbein/AP

White House press secretary Karoline Leavitt earlier on Wednesday told reporters that layoffs of some federal employees were "imminent."

"These are unfortunate consequences to a government shutdown," Leavitt said on Wednesday.

Oct 01, 2025, 5:21 PM EDT

OMB director tells Republicans layoffs will come in next 'day or two': Sources

OMB Director Russell Vought warned Republican lawmakers on a conference call Wednesday that the Trump administration will start firing federal workers in the next "day or two," multiple sources who were on the call told ABC News.

The firings would be part of the administration’s effort to initiate a reduction in force, or RIF, targeting furloughed federal employees.

Vought issued a memo last week warning of possible cuts in the event of a shutdown.

Vice President JD Vance talks to reporters outside the White House, Sept. 29, 2025, in Washington, as Director of the Office of Management and Budget, Russell Vought, Speaker Mike Johnson and Senate Majority Leader John Thune listen.
Win McNamee/Getty Images

The congressional sources on the call told ABC News Vought did not provide any additional details on which departments and agencies could be impacted, or how deep a new round of RIFs may cut into the federal workforce.

The sources said Vought also acknowledged that the WIC nutrition program -- providing funds to help feed women, infants and children -- will run out soon.

-ABC News' John Parkinson

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