Trump Administration Targets New York in Shutdown Fight, Following Through on a Threat

WASHINGTON:  The federal government shut down at midnight as President Donald Trump and congressional Democrats blamed each other for failing to reach an agreement in a bitter standoff over funding the government.

It marks the 15th government shutdown since 1981, and there’s no immediate end in sight as congressional Democrats demand health-care policy changes that Trump and Republicans have refused to entertain.

Looming over the fight is the threat of mass layoffs, with Trump saying “vast numbers” of federal workers could be terminated. The White House Office of Management and Budget said in a recent email that workers whose activities are “not consistent with the President’s priorities” are a target, and Vice President JD Vance told reporters that the administration will “have to lay people off” if a shutdown extends for weeks.

The shutdown blame game also is ratcheting up. The White House website features a clock counting the amount of time “Democrats have shut down the government,” while the Democratic National Committee wrote on social media early Wednesday that “Republicans own this shutdown.”

In the event of a government shutdown, borrowers would still be required to make payments on their outstanding student debt. 

The Department of Education will continue to disburse Pell Grants and Federal Direct Student loans, according to the department’s contingency plan. As available, permanent and multi-year appropriations will also be used to continue processing Free Applications for Federal Student Aid, or FAFSA, the plan said. 

During a lapse in funding, the department would cease any new grantmaking activities; however, grant programs typically make awards over the summer.

Borrowers with a question or dispute related to their loan may have a tougher time reaching the department, as it plans to furlough the majority of its staff. 

Experts say while most borrowers won’t “feel” a short shutdown, more issues could arise the longer it takes those in Washington to make a deal. 

-David Morgan, Bo Erickson, Nolan D. McCaskill and Richard Cowan