TAIPEI (TVBS News) — The U.S. federal government shut down Thursday (Oct. 2) following a budget impasse in Congress, marking the first closure since 2019. President Trump used the opportunity to freeze $26 billion in funds, targeting Democrat-leaning states, and threatened layoffs of federal employees.
The American Institute in Taiwan (美國在台協會) also stopped social media updates, only posting for urgent safety or security issues. Experts warn the prolonged shutdown might impact the U.S. economy, while Taiwan could face national security risks. CNN anchor Erin Burnett noted the Trump administration's unique approach, discussing permanent layoffs rather than unpaid leave for federal employees.
The shutdown has already led to museum and national park closures. Airport operations and U.S. spy satellites may soon face staffing shortages. Taiwan's intelligence capacity, reliant on U.S. support, could see significant impacts on resources needed to monitor China's activities.
Vice President Vance and White House spokesperson Lewitt communicated on the administration's behalf. Vance warned of possible layoffs if the closure persists, and Lewitt stressed the urgency. Shana Orczyk Sissel, a capital management CEO, said Wall Street sees this as a "boy who cried wolf" scenario, though experts caution that a prolonged closure could damage GDP growth and harm the U.S. economy. ◼
