October 2, 2025 Update

One day into the federal government shutdown, the Trump administration appears to be using the stoppage to rescind federal funding to majority-Democratic states as a way of pressuring Democratic Senators while continuing to threaten to lay off more federal employees.

Even as the Senate once again failed to advance either party’s proposals to end the shutdown on Wednesday, small groups of Senators from both parties were huddling on the Senate floor to find a way out of the impasse. But Republicans’ hopes that the shutdown would induce more Democratic Senators to switch sides and support the Republican “clean” CR have yet to bear fruit.

Below is a roundup of news about the shutdown.

White House uses shutdown to maximize pain and punish political foes

The Trump administration took steps on Wednesday to maximize the pain of the government shutdown, halting billions of dollars in funds for Democratic-led states while readying a plan to lay off potentially droves of civil servants imminently.

Senior government officials privately warn against firings during shutdown

Senior federal officials have quietly counseled several agencies against firing employees while the government is shut down — as President Donald Trump has suggested he will — warning the strategy may violate appropriations law, according to two people familiar with the matter who spoke on the condition of anonymity to discuss sensitive internal deliberations.

Bipartisan talks to end shutdown percolate in Senate

Amid tough talk from both sides of the aisle about who’s to blame for the partial government shutdown, bipartisan talks began to take shape as the rank and file sought a way out of the impasse.

Labor unions sue OMB, OPM for ‘unlawful’ threats of mass layoffs ahead of shutdown

As the federal government hurtled toward a shutdown Tuesday, two labor unions representing federal workers sued the Trump administration over its threats to conduct mass layoffs while the government is closed.

One thing Republicans and Democrats can agree not to shut down: National parks

The government shutdown is forcing Republicans and Democrats alike to balance political point-scoring with keeping up appearances at the country’s iconic national parks. Before the National Park Service put out internal guidance Tuesday to keep the parks mostly open and staffed with skeleton crews, Republican Gov. Spencer Cox of Utah’s and Democratic Gov. Jared Polis of Colorado’s administrations were both strategizing about how to keep them open.

We asked 1,000 Americans who they blame for the shutdown. Here’s what they said.

A Washington Post poll finds significantly more Americans blame President Donald Trump and congressional Republicans for the shutdown than Democrats, though many say they are not sure.

Shutdown FAQs

What does a shutdown mean for government contractors, employees, grantees and the general public? Click here for more information.

Join the mailing list to have the Agora Shutdown Update sent to you directly.