World

Donald Trump warns of ‘irreversible’ cuts

That would all but ensure the US enters its 15th government shutdown since 1981.

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Federal agencies issued detailed plans that would close offices conducting scientific research, customer service, and other activities and send tens of thousands of workers home. Military troops, border guards and others doing work deemed “essential” would stay on the job, but would not get paid until Congress resolves the standoff.

In memos to soon-to-be-furloughed employees, several agencies including the Justice Department and the Social Security Administration blamed Democrats for the impending shutdown, violating long-standing norms that aim to shield government workers from partisan pressure. Budget-related showdowns have become a routine feature in Washington as the nation’s politics have grown increasingly dysfunctional, though they are often resolved at the last minute.

Airlines warned that a shutdown could slow flights, while the Labor Department said it would not issue its monthly unemployment report, a closely watched barometer of economic health. The Small Business Administration said it would stop issuing loans, while the Environmental Protection Agency said it would suspend some pollution-cleanup efforts.

The longer a shutdown lasts, the broader the impact.

The government last shutdown for 35 days in 2018 and 2019, during Trump’s first term, due to a dispute over immigration. That cost the U.S. economy $US3 billion ($4.5 billion), or 0.02 per cent of GDP, according to the nonpartisan Congressional Budget Office.

Trump’s threat to fire more federal workers or entirely eliminate some programs could deepen the chaos. Since returning to office in January, he has refused to spend billions of dollars authorised by Congress and reduced federal payrolls by roughly 300,000 people.

“He wants to take extra steps to punish the people of this country if there’s a shutdown,” Democratic Senator Chris Van Hollen of Maryland said.

Two labor unions representing federal employees filed a lawsuit to block agencies from enacting mass layoffs.

Trump’s actions have prompted some Democrats to question why they should vote for any spending legislation at all.

Though Republicans control both chambers of Congress, they need at least seven Democratic votes to pass legislation out of the Senate.

Democrats are under pressure from their frustrated supporters to score a rare victory ahead of the 2026 midterm elections that will determine control of Congress for the final two years of Trump’s term.

Republicans say they are open to a fix, but accuse Democrats of holding the budget hostage to their demands.

Democrats said they believed they were making headway with Trump after a White House meeting on Monday. But hours later, the president posted a deepfake video showing manipulated images of Democratic leaders that drew on stereotyped images of Mexicans.

“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,” House Democratic Leader Hakeem Jeffries told reporters.

Reuters

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