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Government shutdown updates: Leavitt says Trump exploring cutting aid to Portland

"We will not fund states that allow anarchy," she told reporters.

Last Updated: October 4, 2025, 8:50 AM EDT

The federal government remains closed amid a bitter impasse on Capitol Hill over competing congressional spending bills.

President Donald Trump and Republicans have cast blame for the shutdown on Democrats' health care demands, while Democrats insist Republicans need to negotiate.

The Trump administration has threatened mass layoffs of some federal workers during the shutdown.

Key Headlines

Here's how the news is developing.
Oct 03, 2025, 11:42 AM EDT

Johnson defends Trump's AI-generated memes threatening federal firings

Johnson was asked by reporters to respond to President Donald Trump's latest social media posts depicting AI-generated videos that taunted Office of Management and Budget Director Russell Vought as the "grim reaper" and another that made fun of House Minority Leader Hakeem Jeffries.

The speaker has said for days that the shutdown is hard on federal workers who are not getting paid. Johnson, however, defended Trump's threats and trolling.

House Speaker Mike Johnson speaks next to Senate Majority Leader John Thune during a press conference on the third day of a partial shutdown of the federal government at the U.S. Capitol in Washington, October 3, 2025.
Jonathan Ernst/Reuters

"The effects are really serious on real people, real Americans. We support federal employees who do a great job in all of these different areas, but what they're trying to have fun with, trying to make light of, was to point out the absurdity of the Democrats' position," he said.

"And they are using the memes and the tools of social media to do that. Some people find that entertaining, but the decisions are hard ones and they are not taking any pleasure in that," he added.

Johnson reiterated claims that Trump has the power to make the firings, but would not provide more details or explanation as to how those terminations would affect the budget.

Oct 03, 2025, 10:04 AM EDT

Vought cancels federal funding for Chicago transit projects

Vought and the Department of Transportation announced Friday that the federal government would be withholding funds for two Chicago Transit Authority projects, the CTA Red Line Extension and the CTA Red and Purple Modernization Program.

The DOT said it was probing whether CTA was involved with "unconstitutional practices" where it promoted "race- and sex-based contracting and other racial preferences as a public policy."

A Chicago Transit Authority train pulls into the new Damen Ave. station just two blocks from the United Center, Aug. 12, 2024.
Charles Rex Arbogast/AP

The announcement came days after Vought withheld funding for New York and New Jersey-based transit infrastructure funding for the same reason.

"Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices," DOT said in a statement.

Chicago Mayor Brandon Johnson didn't immediately comment.

-ABC News' Ayesha Ali

Oct 03, 2025, 9:47 AM EDT

Trump posts more deep fake videos taunting federal cuts, Jeffries

President Donald Trump took to social media Friday to troll Democrats and critics with AI-generated videos.

In one post, the president posted an AI-generated video depicting OMB Director Russ Vought as the Grim Reaper as the administration threatens mass layoffs for federal workers.

President Donald Trump answers questions while childhood cancer survivors and their families gather in the Oval Office at the White House, September 30, 2025 in Washington.
Win McNamee/Getty Images

"Russ Vought is the Reaper. He wields the pen, the funds, and the brain. Here comes the Reaper," someone sings in the video as Vought is depicted walking through the Capitol as the character.

In another post, Trump posted another AI video of him hitting House Minority Leader Hakeem Jeffries with a "TRUMP 2028" hat while they were seated in the White House.

Jeffries, who was the subject of a deep fake post by Trump earlier in the week, has not immediately responded.

-ABC News' Lalee Ibssa

Oct 03, 2025, 5:54 AM EDT

Senate to again vote Friday on stopgap-funding bills

The Senate is scheduled to reconvene Friday and take up two stopgap-funding bills -- one sponsored by each party -- that could end the government shutdown that began Wednesday.

Friday’s session is scheduled to begin at 11:30 a.m. ET, with voting expected in the afternoon.

A view of the U.S. Capitol dome in Washington, Oct. 2, 2025.
Nathan Howard/Reuters

Democrats on Wednesday blocked, for the third time, a stopgap funding bill offered by Republicans. Democrats are insisting that any solution address their demands on health care before they vote to advance it.

No votes were held on Thursday, as the Senate broke for Yom Kippur.

Senate Majority Leader John Thune speaks during a news conference on the Upper West Terrace of U.S. Capitol Building on October 1, 2025 in Washington, DC.
Andrew Harnik/Getty Images

Senate Majority Leader John Thune on Thursday again placed the blame for the shutdown on Democrats, saying they were "playing a losing game" by not supporting the House-passed Republican bill, which would provide government funding for seven weeks.

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