What Project 2025 Has To Do With This Government Shutdown
CNBC·2025-10-07 16:00

Government Shutdown & Workforce Impact - The Trump administration is potentially using the government shutdown to reduce the federal workforce, possibly impacting thousands of employees [1] - The administration might leverage the shutdown to cut funding from disfavored programs [2] - OMB's plan suggests that approximately 23% of federal employees could be furloughed if the shutdown persists [3] - Around 154,000 federal employees accepted buyouts earlier in the year [4] Fiscal & Political Dimensions - The government faces a significant financial challenge, potentially leading to insolvency [3] - The shutdown is viewed as a matter of political priorities, with conservatives aiming to reshape the federal bureaucracy [9] - Project 2025 aims to change the dynamics within the federal workforce, potentially reducing the influence of unions [10][11] - Democrats are seeking a 15 trillion increase in spending, which Republicans oppose [5] Spending & Debt - Mandatory spending on programs like Social Security, Medicare, and Medicaid constitutes over 75% of federal spending and grows faster than the economy [6] - A Republican reconciliation bill previously increased the deficit by approximately 4 trillion over ten years [7] - Some analysts believe tax cuts could stimulate more growth than tax increases [8]