The Congressional Budget Office estimated that about 750,000 employees will be affected daily by wage losses totaling approximately $400 million.

The New York Times reported that President Donald Trump’s administration has taken steps to maximize the impact of the government shutdown by halting billions of dollars in funding allocated to Democrat-led states, while preparing for mass layoffs of government employees.

The newspaper described these measures as unprecedented and punitive in nature, reflecting how Trump might exploit the full government shutdown to push his political agenda, reduce the budget, and pressure his opponents.

The New York Times added that White House Budget Office Director Russell T. Vought announced on social media a suspension or cancellation of about $26 billion in previously approved funding, including $18 billion for infrastructure projects in New York, the stronghold of Senate Democratic Leader Chuck Schumer and House Democratic Minority Leader Hakeem Jeffries.

The paper also quoted Vought in a private meeting with Republican lawmakers saying that layoffs—known as “workforce reductions”—could begin within a day or two, while Vice President J.D. Vance confirmed these measures are necessary to maintain “essential services,” despite such steps not being taken in previous shutdowns.

The New York Times noted that the shutdown has already disrupted thousands of federal employees and forced others, including military personnel and airport workers, to work without pay amid uncertainty about when they will receive their back pay. The Congressional Budget Office estimated that about 750,000 employees are affected daily by wage losses of about $400 million.

The paper also quoted Democratic Senator Patty Murray sharply criticizing the administration, stating that Trump and Vought “are using the shutdown as an excuse to inflict more pain.” It also mentioned that labor unions have filed lawsuits in California challenging the legality of the mass layoffs.

The report concluded by emphasizing that the Trump administration adopts a broad view of executive power and continues to use the shutdown as a means to reshape the government apparatus on a large scale, despite the economic and political risks involved.