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White House Freezes $28 Billion, Fires Thousands Amid Government Shutdown


Sun 12 Oct 2025 | 01:51 AM
Donald Trump
Donald Trump
Taarek Refaat

U.S. President Donald Trump announced on Friday that thousands of federal employees have been laid off as part of sweeping government cuts linked to the ongoing shutdown, blaming Democrats for what he described as “a politically motivated standoff” that has paralyzed Washington.

According to multiple federal agencies, layoffs have begun across several departments, including the Treasury, Health and Human Services, Education, Commerce, and Homeland Security, though the total number of affected employees remains unclear.

The move marks one of the largest government staff reductions in recent U.S. history, coming amid a deepening fiscal and political crisis as negotiations over government funding remain stalled in Congress.

Speaking from the Oval Office, Trump accused Democrats of provoking the shutdown by refusing to approve government funding without a guarantee to extend healthcare subsidies under the Affordable Care Act.

“Democrats started this dispute,” Trump said. “These layoffs target mainly those tied to the Democratic establishment.”

While Republicans currently hold a majority in both chambers of Congress, they still require Democratic votes in the Senate to pass any funding bill. Democrats have refused to compromise, demanding that health insurance coverage remain protected for an estimated 24 million Americans.

The White House has also frozen at least $28 billion in infrastructure funds allocated to Democratic-leaning states, including New York, California, and Illinois — a move critics have called “politically punitive.”

A Justice Department filing revealed that over 4,200 federal employees have already received termination notices across seven agencies, including 1,400 at the Treasury Department and 1,100 at Health and Human Services.

The layoffs follow earlier warnings this year, when around 300,000 federal workers were informed that their positions could be eliminated as part of Trump’s cost-cutting agenda.

Democratic leaders condemned the layoffs, calling them illegal and “politically weaponized.” Senate Majority Leader Chuck Schumer said in a statement:

“Every lost job, every struggling family, and every reduced service is a direct result of this administration’s decisions.”

Federal employee unions have filed lawsuits to block the terminations, arguing that the government cannot lawfully dismiss workers during an active shutdown. The White House responded in court filings that the unions “lack legal standing” to challenge personnel decisions.

A federal court is expected to hear the case on October 15.

The layoffs coincide with what would have been a reduced payday for many government employees. Hundreds of thousands have already been furloughed or ordered to work without pay, as the shutdown entered its tenth day on Friday.

More than 2 million active-duty service members are expected to miss their October 15 paycheck if the impasse continues.

Officials confirmed that layoffs have also begun at the Department of Housing and Urban Development, the Environmental Protection Agency, and the Departments of Energy and Interior. Many of these agencies oversee key services such as environmental monitoring, weather forecasting, and public safety, all now facing operational disruptions.

Even within Trump’s Republican Party, dissent is emerging. Senator Susan Collins, chair of the Senate Appropriations Committee, criticized the move:

“Whether they are working without pay or being sent home, these employees perform essential duties that serve the American people,” she said.

Economists warn that the shutdown, coupled with mass layoffs, could weigh heavily on the U.S. economy if prolonged, delaying major projects and weakening consumer confidence.

Still, Trump’s advisors insist the president is determined to press ahead until Democrats “end their obstruction.”