Democrats Stand Firm as Shutdown Threat Looms in Budget Standoff

Democrats refused to back down in the federal funding standoff as a Sept. 30 deadline approached, signaling they would resist the White House's push for a short-term funding fix coupled with policy concessions. Senate Minority Leader Chuck Schumer said the Office of Management and Budget memo directing agencies to prepare for large-scale layoffs is "an attempt at intimidation" and argued the moves are not about funding the government but about scaring federal workers. House Minority Leader Hakeem Jeffries echoed the sentiment in a post on X, telling readers to "Get lost" and saying Democrats would not be intimidated by the administration’s plan to dismiss workers.

The memo sent late Wednesday instructed agencies to plan for permanent job cuts in programs whose funding would lapse next week or lack another source of funding, and for programs whose activities are not aligned with the President’s priorities. It declared, "Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown, and we must continue our planning efforts in the event Democrats decide to shut down the government." The guidance marks a shift from the furloughs seen in past shutdowns, where workers were temporarily idled but later recalled when funding was restored. Politico reported the memo as lawmakers pressed toward the deadline.

Democrats have blocked a GOP plan to extend funding through Nov. 21, arguing that any extension must reverse billions in Medicaid cuts enacted by the so-called Big Beautiful Bill, among other policy demands. Senate Republicans have rejected Democrats’ plan, and negotiations have stalled as both sides exchange accusations about who is responsible for a potential shutdown. Trump had been scheduled to meet with top Democrats to avert a shutdown but canceled the meeting, posting that Democrats’ demands rendered engagement unproductive on Truth Social. "After reviewing the details of the unserious and ridiculous demands being made by the Minority Radical Left Democrats in return for their Votes to keep our thriving Country open, I have decided that no meeting with their Congressional Leaders could possibly be productive," he wrote.

Trump later told reporters that the stalemate stemmed from Democratic demands, saying, "This is all caused by the Democrats. They asked us to do something that’s totally unreasonable. They never change." Earlier Thursday, House Democratic Whip Katherine Clark told CNN that the president claims to love deals but "will never fight for the American people" when facing cuts to health care and other programs. Clark warned that the proposed reductions would be dangerous for families and the broader economy, calling for negotiations that protect essential services while addressing fiscal priorities.

Labor unions and federal employee advocates pressed for protections for workers. Everett Kelley, national president of the American Federation of Government Employees, said, "Federal employees are not bargaining chips. They are veterans, caregivers, law enforcement officers, and neighbors who serve their country and fellow Americans every day. They deserve stability and respect, not pink slips and political games." The administration and lawmakers alike have pointed to ongoing declines in federal employment this year as part of a broader push to shrink the footprint of government, a trend that would be exacerbated by a shutdown.

As the deadline nears, both parties warn of consequences if a funding agreement is not reached. The potential for a shutdown would affect programs funded by discretionary spending and those tied to more complex funding arrangements, with the memo indicating agencies should continue contingency planning for a scenario in which funding lapses. Observers note that the current stalemate is unfolding amid entrenched partisan positions on health care, domestic programs, and the size of the federal government, complicating prospects for a quick, bipartisan resolution. Analysts and congressional staff say any deal would need to address both immediate funding gaps and longer-term policy disagreements, and that public services—ranging from oversight to social safety nets—could feel the impact if funding is not restored promptly.