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16 October 2025 11:58  |

US Shutdown Enters 16th Day, Judge Blocks Mass Federal Layoffs

The United States government crisis continues with no sign of resolution as the federal shutdown enters its 16th day. The political feud between the White House and Congress has now led to legal action, with a federal judge blocking the Trump administration's plan to lay off thousands of federal employees amid a budget impasse.

Judge Susan Illston of the Federal District Court in San Francisco issued a temporary injunction halting the layoffs of more than 4,100 employees that had been scheduled for the past few days. In her ruling, Illston stated that the layoffs "potentially overstep executive authority and are politically motivated."

"The move to lay off the masses in the midst of a shutdown without clear administrative procedures suggests a potential abuse of power," Illston said in court documents released Wednesday night (October 15).

Political Deadlock in Congress

Efforts to end the impasse remain deadlocked. The US Senate failed again—for the ninth time—to pass a continuing funding bill proposed by the House of Representatives.

Democrats remain reluctant to support the bill without guaranteeing an extension of healthcare subsidies under the Affordable Care Act (ACA), while Republicans insist that the demand should be discussed separately from the issue of government funding.

House Republican Leader Mike Johnson said that "the shutdown will only end if Democrats stop using healthcare subsidies as a political bargaining chip." Conversely, Senate Democratic Leader Chuck Schumer called the White House's policy a "pressure tactic against our own people."

Impacts Widespread Across Sectors

The shutdown, which began on October 1, has had a significant impact on the national economy and public services.

According to the latest estimate from the US Treasury Department, the economic losses from the government shutdown could reach US$15 billion per week if the impasse continues.

More than 750,000 federal employees are on furlough, while thousands more are working without pay in critical sectors such as national security, air traffic control, and airport services.

This situation has raised serious concerns in the aviation sector after increasing reports of TSA employees and air traffic controllers missing work due to exhaustion and financial stress.

Several public institutions, such as the Smithsonian Institution and the National Zoo in Washington, D.C., have also been forced to close due to lack of operating funds. In the real estate sector, delays in the National Flood Insurance Program (NFIP) have slowed transactions in flood-prone areas.

White House Remains Firm

Despite mounting public pressure, the White House has insisted it will not change its stance. President Donald Trump called the policy of staff cuts and temporary government agency closures "necessary steps to curb bureaucratic waste."

Meanwhile, the Office of Management and Budget (OMB), led by Russ Vought, is reportedly preparing a list of agencies that will continue operating using internal reserves. This move has drawn criticism for allegedly "cherry-picking" agencies based on political considerations, rather than public priorities.

Potential for Longest Shutdown in History

With no agreement yet reached on Capitol Hill, many observers predict this shutdown has the potential to be the longest in United States history, surpassing the 35-day record set in 2018–2019.

Economists warn that the longer the shutdown lasts, the greater the risks to fourth-quarter economic growth and the increased pressure on the labor market and domestic consumption.

"If this impasse continues for more than a month, the impact could extend to inflation and GDP growth data," said an economic analyst from Bank of America.

Conclusion

The US shutdown crisis is now more than just a budget debate; it has become a test of political strength between the White House, Congress, and the judiciary.

With mass layoffs now temporarily suspended by the courts, public scrutiny is intensifying on Trump's policy direction and Congress's ability to find a compromise solution.

As long as this impasse persists, millions of Americans will remain in economic and social uncertainty.

Source: Newsmaker.id

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