Trump Plans “temporary Or Permanent” Cuts, Mass Firings During Shutdown To Rework Government

Trump Plans “temporary Or Permanent” Cuts, Mass Firings During Shutdown To Rework Government

The federal government shutdown, which has left over 500,000 federal employees furloughed, is now seeing a new development. President Donald Trump has reportedly been discussing with his budget director potential permanent program cuts and "mass firings" .

The shutdown, which began due to a budget lapse, has immediate economic impacts, including the halting of federal loans and contracts for 33 million small businesses . The economic effect on these businesses is compounded, as they may face delays in processing loans and contracts, potentially leading to a loss of momentum and revenue .

President Trump has indicated that he is considering cuts to programs and agencies that are not aligned with his priorities, and these cuts could be either temporary or permanent . The legal justification for these potential terminations is based on the authority to reduce the workforce when discretionary funding lapses .

Economic performance analyst Dan Varroney estimates that the last shutdown, which lasted 35 days, resulted in a loss of $3 billion that was never recovered as businesses struggled to regain their full speed . The current shutdown has the potential to cause similar, if not worse, economic repercussions.

As the shutdown continues, the hope is that the government will reopen soon to mitigate further economic damage. The economic impact on small businesses and the potential for mass firings remain significant concerns for the economy as a whole.