The US federal government shutdown entered its third day on Saturday, as the White House directed agencies to begin permanent layoffs of federal workers while Senate Democrats refused to advance a Republican spending measure. The Office of Management and Budget confirmed the layoff guidance in a memo to agency heads.

The standoff began October 1 after the Senate failed to reach the 60 votes needed to pass a stopgap funding bill. Democrats, led by Minority Leader Chuck Schumer, demanded an extension of expiring health insurance subsidies, while Republicans insisted on a clean continuing resolution first.

OMB Director Russell Vought instructed departments to move beyond routine furloughs toward reductions in force targeting programs not aligned with administration priorities. Federal employee unions, including the American Federation of Government Employees, said they were preparing legal challenges to the layoffs.

President Donald Trump blamed Democrats for the impasse in posts on Truth Social and said he would not negotiate on health subsidies until the government reopened. Schumer countered that the layoffs were an attempt to pressure lawmakers and accused the administration of weaponising the shutdown against its own workforce.

The Congressional Budget Office has estimated that hundreds of thousands of federal workers face furlough or dismissal if the shutdown persists. No Senate votes were scheduled before Monday, leaving little prospect of a resolution over the weekend.