Washington Edition

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, senior editor Joe Sobczyk looks at the how the standoff over the government shutdown is playing out. Sign up here and follow us at @bpolitics. Email our editors here.

‘Imminent’ Action

The Trump administration is playing hardball with Democrats to break the standoff that’s partially shut down the federal government while capitalizing on the impasse to punish his political opponents.

President Donald Trump’s budget chief, Russell Vought, told House Republicans in a private meeting today that some federal agencies will start firing — not just furloughing — federal workers within a couple of days, Bloomberg’s Erik Wasson, Gregory Korte, Steven T. Dennis and Jamie Tarabay report.

White House Press Secretary Karoline Leavitt confirmed the layoffs were “imminent” but wouldn’t give any details about who might be axed.

Vought also said he’ll cut $8 billion from renewable energy projects in more than a dozen states that voted for Democrat Kamala Harris in the 2024 presidential election.

And he took a direct swing at Senate Democratic leader Chuck Schumer and House Democratic leader Hakeem Jeffries, both New Yorkers, by halting $18 billion for infrastructure projects in New York City.

House Speaker Mike Johnson was clear about the goal. The shutdown, he said on Fox Business this morning, gives Republicans a chance to “do some things that we would not otherwise be able to do, because we would never get Democrat votes for them.”

Meanwhile, both parties are trying to pin the blame on each other in the hopes that voters will deliver punishment in next year’s midterms. Those elections will determine which party controls Congress and whether Trump will be able to advance his agenda in the last two years of his term.

QuickTake: How US Government Shutdowns Became Routine

Polls show voters aren’t very happy with either party. But two recent surveys showed they are more likely to blame Republicans, who control Congress and the White House, than Democrats for the shutdown. See the New York Times/Siena poll here, and the Economist/YouGov survey here.

The shutdown will last at least until Friday. In one possibly hopeful sign, a group of moderate Republican and Democratic senators were seen huddling to talk about a way out. An option that has popped up more than once is a very short stopgap funding bill while both parties negotiate over Democrats’ demands for an extension of expiring Obamacare subsidies. — Joe Sobczyk

Don’t Miss

The Supreme Court’s refusal to let Trump immediately oust Federal Reserve Governor Lisa Cook has eased pressure on the central bank after months of searing White House criticism that threatened its independence.

At least some of the hundreds of high-profile legal challenges to Trump administration policies are being paused amid the US government funding impasse.

New York state won a temporary order forcing the Trump administration to hold off redirecting $33.9 million in anti-terrorism security funds.

Trump said he would confront Chinese President Xi Jinping over Beijing’s refusal to purchase American soybeans, a growing area of tension between the world’s two largest economies.

Payrolls at US companies unexpectedly dropped in September, according to ADP Research figures, but that’s due at least in part to issues with data analysis.

Factory activity in the US shrank in September for a seventh consecutive month, reflecting a pullback in orders and adding to evidence manufacturing is lacking traction.

The administration pulled the nomination of EJ Antoni to lead the Bureau of Labor Statistics, throwing the leadership of the critical data agency into further disarray after Trump fired the former commissioner.

Federal judges in Texas this week will weigh whether the state’s newly drawn congressional map unlawfully dilutes the voting power of racial minorities, a case that could reshape the political balance of the House.

Bloomberg Economics Washington: Join us Oct. 14 for a deep dive into the outlook for the economy and what it means for the Federal Reserve. Register here.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., hosts Joe Mathieu and Tyler Kendal interviewed Republican Senator Ted Budd of North Carolina and Maryland Democratic Representative Glenn Ivey about the shutdown and the impact on federal workers.

On the program from the Capitol at 5 p.m., they talk with Senators Jeanne Shaheen, a Democrat, and Kevin Cramer, a Republican, about shutdown’s impact on government operations and whether the Senate will vote on a stopgap funding bill this week.

On the Big Take podcast, Bloomberg’s Gregory Korte and Molly Smith join host David Gura to talk about what the government shutdown means for the release of economic data and how it could affect federal policymakers, investors, and everyday Americans. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

The artificial intelligence boom may eventually come for all of our jobs, but a new analysis from the Budget Lab at Yale finds that disruption is happening only marginally faster than previous waves of technology. Since ChatGPT’s debut in 2022, the churn across US occupations is only about a percentage point above the internet boom years. But the future is not evenly distributed: Some industries — like information technology and finance — are more disrupted than most. — Gregory Korte

What’s Next

The Supreme Court opens its new term on Monday.

The House is scheduled to return to Washington on Tuesday.

Consumer borrowing data from the Federal Reserve is scheduled for release Tuesday.

The University of Michigan’s preliminary reading of consumer sentiment in October is out Oct. 10.

Seen Elsewhere