• Home
  • Categories
  • News
  • Community
EN
EN
Home
CategoriesNewsGlossaryCommunityAbout Us
Contact Us
Social Media
Region
🌏International
Region
🌏International

Copyright © 2023-2026 Traderknows Ltd. All rights reserved.

Contact
Home
/
News
/
The U.S. government shutdown escalates, amplifying the layoff crisis.

The U.S. government shutdown escalates, amplifying the layoff crisis.

2025-10-13
Summary:The U.S. government shutdown has continued for the 12th day, with the Vice President warning of an expanded scale of layoffs. The deadlock between the two parties is worsening the crisis.

美國司法部

Government Shutdown Enters Day 12: Risk of Layoffs Expands

As the U.S. federal government shutdown enters its twelfth day, there are no signs of a political breakthrough. Vice President JD Vance warned in a Sunday TV interview that if Congress fails to agree on a budget soon, the government will have to consider larger-scale layoffs. He described the situation as "painful and unsustainable."

Currently, hundreds of thousands of federal employees are on unpaid leave, and some key positions have been temporarily reassigned. The Office of Management and Budget stated that if the shutdown continues, more than 4,000 federal employees could be laid off this week, affecting core departments such as education, finance, health, and the environment.

Public Services Paralyzed as Multiple Agencies Close

As government funds deplete, the operation of public institutions is grinding to a halt. The Smithsonian Institution, supported by federal funding, has announced the closure of all its museums, research centers, and the National Zoo this week. This move is seen as a symbolic event reflecting the shutdown's impact on public cultural institutions.

Simultaneously, the Departments of Education, Treasury, and Homeland Security have instructed employees to prepare for a "long-term shutdown." Environmental Protection Agency employees have been told that if no budget is passed, they will receive formal layoff notices within the week.

Union organizations are taking legal action. The American Federation of Government Employees has filed a lawsuit seeking to halt the White House's budget office layoff plans, accusing it of violating federal employment law and undermining labor rights.

White House Emphasizes Prioritizing Military and Public Welfare

In response to criticism, Vice President Vance emphasized in a statement that the government is working to ensure military salaries are paid on time and that basic food assistance and social security programs are retained for low-income families. "We are prioritizing those most in need," he said, "but this maintenance is temporary unless Congress acts swiftly."

Sources close to the administration say the White House is considering using emergency funds to maintain minimum operations of defense and food programs. However, such measures, if prolonged, could increase the risk of fiscal deficits. Treasury officials have warned that if the shutdown exceeds three weeks, the U.S. credit rating could face further downgrades.

Bipartisan Negotiations Stalled as Political Blame Intensifies

The root cause of the shutdown remains the budget bill deadlock. Democrats demand the extension of healthcare subsidies under the Affordable Care Act, while Republicans insist on resuming government operations before further negotiations. The parties are severely divided on the priority of fiscal expenditures.

House Democratic Leader Hakeem Jeffries criticized Republicans on Sunday's program for "abusing political power," saying they should be accountable for the shutdown's consequences. In response, Republican Speaker Mike Johnson accused Democrats of "ignoring the people's suffering" and focusing only on political maneuvering.

Political commentators note that the current situation is very similar to the 2019 government shutdown but with a broader impact. If Congress fails to reach an agreement this week, the U.S. economy could suffer a noticeable drag on fourth-quarter growth.

Public Confidence Shaken as Government Credibility Tested Again

As the shutdown prolongs, public dissatisfaction is escalating. The latest poll from the Pew Research Center shows nearly 70% of Americans believe Congress is "placing party interests above national interests," and public trust in the federal government has fallen to its lowest level in nearly a decade.

Analysts believe the shutdown is not only a budgetary dispute but also a manifestation of dysfunctional political systems. If both parties continue to blame each other without seeking compromise, the government's operational credibility and international image will suffer long-term damage.

The market generally expects that if there is no substantial progress this week, the White House may be forced to initiate partial office reopening through executive orders to prevent public safety and basic services from completely collapsing.

U.S. political analysts point out, "The shutdown itself is not terrifying, but the fact that the public is getting accustomed to this political chaos." This ongoing crisis sees Washington's standoff dragging the entire nation into deeper fiscal and trust challenges.

Business Cooperation Telegram Eng

Business Cooperation Skype ENG

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End
Previous
Next
Comments
0/1000
Written by
Created date:2025-10-13 03:13
Last Updated:2025-10-13 07:22
Independent Analysis: Manually researched and fact-checked by the TraderKnows Compliance Team, based on public regulatory records.
Wiki
Force Majeure

During the performance of the contract, unforeseen, unavoidable, and uncontrollable external events or forces may interfere, making the fulfillment of the contract impossible or extremely difficult.

Recent Post

Broadcom AI Guidance Triggers Valuation Consolidation as Middle East Ceasefire Eases Oil

16 minutes ago

Gold Prices Decline 1.2% as Middle East Tensions Escalate and US Dollar Strengthens

34 minutes ago

US Stocks Retreat from Record Highs as Middle East Tensions and Redemption Limits Weigh

35 minutes ago

Global Risk-Off Ignited by Fed Rate Hike Bets and Broadcom Revenue Miss

35 minutes ago

Global Firms Accelerate Rare Earth Decoupling as Alternative Technologies Commercialize

35 minutes ago

Euro Bond Yields Rise as Traders Bet on Three ECB Rate Hikes

36 minutes ago

US Treasury Yields Climb as Geopolitical Tensions and Strong Macro Data Fuel Inflation Concerns

36 minutes ago

Gold Prices Rebound as Oil and US Dollar Slip Amid Middle East Ceasefire Progress

37 minutes ago

Yen Hits Crucial 160 Level as Mid-East Tensions Boost USD Triggering Intervention Fears

38 minutes ago

Mideast Tensions Weigh on Asian Equities as Lebanon Truce Eases Oil Prices

39 minutes ago

Coinbase Partners with US DOJ and Tech Giants to Freeze 3 Million in Crypto Linked to SE Asia Fraud…

39 minutes ago

Jensen Huang Defends AI ROI in Taipei Citing Trillions in Value Created

39 minutes ago

Middle East Tensions Spark Risk-Off Sentiment as Stocks Decline and Oil Pulls Back

40 minutes ago

Fed Beige Book Shows Inflation Rising on Energy Costs Ahead of Warsh First Meeting

40 minutes ago

WSTS Upgrades Forecast: Global Semiconductor Market to Exceed $1.5 Trillion in 2026

41 minutes ago

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.