The U.S. government shutdown is impacting various sectors across the country as the White House warns of potential mass layoffs for federal workers if Democrats do not concede. The Trump administration has also frozen billions in funding for significant projects in New York City, a move seen as an attempt to pressure Senator Chuck Schumer, who is leading the Democratic opposition in the shutdown negotiations.

The shutdown began at midnight local time after the Senate failed to pass a spending bill necessary to fund government agencies. Democrats insisted that the bill include healthcare provisions, which Republicans rejected. These provisions included reversing cuts made by Republicans and extending existing tax credits for health insurance. Republicans argued that these demands would allow funding for healthcare for unauthorized migrants.

As a result of the shutdown, hundreds of thousands of federal workers will not receive pay until it ends. Some employees have been instructed to stay home, while others are required to work without knowing when they will be compensated. "Lay-offs are imminent," said White House Press Secretary Karoline Leavitt.

The shutdown has already affected several tourist attractions. National sites such as the Library of Congress, the U.S. Botanic Garden, and the Liberty Bell have closed. The Smithsonian museums in Washington are expected to shut down next week. Although national parks are generally remaining open, nearly 10,000 park workers are furloughed, leading to a halt in many visitor services.

Other government functions that have been suspended include accepting new patients at the NIH Clinical Center, inspecting food and pharmaceutical production facilities, and issuing new defense contracts. Public health communications from the Centers for Disease Control and research and analysis of economic data have also been affected. However, essential services such as healthcare, law enforcement, border control, public education, and postal deliveries remain largely unaffected. Members of the military will continue their duties, and National Guard troops deployed for crime control will also keep working.

In an unusual move, Vice President JD Vance joined Leavitt at the White House press briefing to support the Republican narrative during the shutdown. He stated that no decisions had been made regarding which federal employees might be laid off and criticized Democrats for holding critical services "hostage" over policy disagreements. "I actually don't think it's going to be that long of a shutdown," he said, adding that he believed moderate Democrats were beginning to show signs of compromise.

Democratic leaders, however, are committed to remaining in Washington to negotiate with Republicans, whom they accuse of abandoning their responsibilities. "What we're fighting for is to protect the health care of the American people, which has been under relentless assault," said Hakeem Jeffries, House Minority Leader. He emphasized that Democrats are not willing to participate in actions that would further harm the quality of life for Americans.

Additionally, Trump administration budget director Russ Vought announced that approximately $18 billion would be withheld from New York infrastructure projects, including a new rail tunnel under the Hudson River. He noted that the shutdown has delayed the review of the projects' contracting processes, resulting in a halt to payment processing.