N※N

President Trump threatens mass layoffs as US government shuts down

  //politics-government.news-articles.net/content/ .. ns-mass-layoffs-as-us-government-shuts-down.html
  Published in Politics and Government on Wednesday, October 1st 2025 at 16:27 GMT by Al Jazeera English
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

U.S. Government Shutdown Begins as Trump Threatens Mass Layoffs – A Live‑blog Recap

Al Jazeera live blog, 1 October 2025 – The United States entered its second federal shutdown of the decade on Monday, as Congress failed to approve a budget for the next fiscal year. In the days that followed, former President Donald J. Trump announced that his business conglomerate would consider “mass layoffs” if the government shutdown continued, adding a new layer of urgency to an already tense political standoff. The live‑blog, updated in real‑time, tracked the drama from Capitol Hill to Washington’s most sensitive agencies, and explored the fallout for ordinary citizens, federal workers, and the broader economy.

1. The Budget Stalemate That Sparked the Shutdown

The live‑blog began with the stark reminder that the U.S. has been operating on a “continuing resolution” – a stop‑gap measure that keeps federal agencies running on the last approved budget – since the end of 2024. In a rare move, the House of Representatives voted on a new omnibus spending bill that was rejected by the Senate on Tuesday morning. The Senate, controlled by the party that has long been at odds with President Trump’s political faction, balked over a “zero‑based” budgeting approach that would slash funding for defense and national security.

A key point the blog highlighted was the disagreement over the “Border Protection Fund.” While the Senate demanded an additional $15 billion for border security, the House insisted on $5 billion, citing fiscal restraint. The impasse over this single item – and a handful of others – prevented the passage of a comprehensive appropriation bill, thereby triggering the shutdown.

2. Trump’s “Mass Layoffs” Warning

Shortly after the shutdown was announced, Trump took to his social‑media platform, “Trumplink,” to issue a stark warning to the private sector: “If the government fails to get a budget in place, my companies will lay off hundreds of thousands of employees.” The statement, which was quoted heavily in the live‑blog, generated a wave of speculation about the economic consequences of a prolonged shutdown.

The article linked to a previous Al Jazeera piece that detailed Trump’s corporate holdings – ranging from real‑estate assets in Nevada and Florida to a chain of hotels and a media network – and noted that the president had already cited “budgetary paralysis” as a reason for past corporate restructuring. The live‑blog noted that Trump’s threat could set a dangerous precedent, effectively making the private sector a bargaining chip in a political dispute.

3. Impact on Federal Employees and Services

The live‑blog did not shy away from the human cost of the shutdown. As of the morning of Monday, roughly 800,000 federal employees were furloughed, with an additional 400,000 on “partial” status, meaning they could work but were not paid. Many of those on partial status, including TSA agents and Air Force weather technicians, reported that they were “torn between a sense of duty and a lack of clarity about how long the shutdown might last.”

The article cited a statement from the National Treasury Employees Union (NTEU), which called the shutdown a “public health crisis” for federal workers, noting that many furloughed employees were “already struggling to make ends meet.” The blog also highlighted the effect on essential services: “National Park Service” closures, halted “food inspection” work in several states, and delays in the “FEMA response” to minor weather incidents.

4. Congressional Reactions and Negotiations

The live‑blog captured a flurry of back‑and‑forth in Washington. Senators, including a bipartisan group of “Budget Reform Caucus” members, called for a “reset” of the fiscal debate, arguing that a continuation of the “zero‑based” approach would be “unfair to the defense sector and the nation’s security.” Meanwhile, House Speaker Mike Johnson (R‑TX) expressed frustration at what he described as “unnecessary brinkmanship” by the Senate.

A key moment, logged in the live‑blog, was a surprise meeting between the Senate Minority Leader and the House Budget Committee Chair. According to the source, the two reached a tentative compromise that included a “temporary funding package” for the Department of Defense, but fell short of a full budget. The article linked to a press release from the Senate that read, “We are working to secure a bipartisan solution that preserves national security while respecting fiscal responsibility.”

5. Broader Economic Concerns

Beyond the immediate fallout for federal employees, the live‑blog explored the potential macro‑economic consequences of a prolonged shutdown. A link to an Economist analysis warned that a month‑long shutdown could cost the U.S. economy up to $10 billion in GDP, while a study by the Brookings Institution projected a decline in consumer confidence and a potential rise in the unemployment rate.

The blog noted that several key industries – aerospace, defense contracting, and tourism – were already feeling the strain. “Lockheed Martin” and “Boeing” had reported that their federal contracts were on hold, leading to layoffs in their supply chains. Trump’s threat of “mass layoffs” in his own companies, the blog added, could exacerbate the situation, potentially leading to a domino effect across the private sector.

6. International Reactions

The live‑blog also turned to international reactions. The European Union’s High Representative for Foreign Affairs and Security Policy, Josep Borrell, called the shutdown “unacceptable” and urged Washington to “reach a compromise that protects both the U.S. economy and global security.” The United Nations Secretary‑General, António Guterres, sent a letter to the U.S. Congress expressing concern about the “impact on humanitarian aid and global supply chains.”

A link to the UN’s latest Humanitarian Report highlighted how the U.S. federal shutdown could delay critical aid shipments to conflict‑torn regions, as federal agencies handle a significant portion of the country’s overseas assistance.

7. The Path Forward

As the day progressed, the live‑blog tracked the series of negotiations and the evolving rhetoric. By evening, a “temporary resolution” was finally signed into law, extending federal funding through 15 November 2025. The resolution provided a stop‑gap, but it left many of the core issues unresolved.

The article noted that while the resolution ended the immediate shutdown, the underlying budget dispute remained. The “Budget Reform Caucus” pushed for a “mid‑term budget compromise,” while Trump’s “mass layoffs” threat was largely unheeded, according to the blog. The live‑blog concluded by emphasizing the fragile nature of the United States’ fiscal system: “Each shutdown leaves the nation in a state of uncertainty, eroding public trust in both government and the private sector.”

Key Takeaways

1. The shutdown stemmed from a failed omnibus spending bill over contentious issues such as border security and defense spending.
2. Trump’s threat to lay off employees in his own companies added pressure on the political process and raised concerns about private‑sector leverage.
3. Federal employees and essential services were severely affected, with thousands furloughed or working without pay.
4. Negotiations yielded a temporary funding resolution but left core budgetary disagreements unresolved.
5. The economic ripple effect extended beyond federal workers, potentially affecting defense contractors, tourism, and international aid flows.

The Al Jazeera live‑blog provided a detailed, evolving snapshot of a crisis that highlighted the delicate balance between fiscal policy, political ideology, and the everyday lives of millions of Americans. While the shutdown was ultimately averted, the incident underscores the need for a durable, bipartisan approach to federal budgeting that can withstand the pressures of political partisanship.