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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 01, 2025, 12:14 PM EDT

Amid shutdown, DOJ lawyers ask to stay, flood insurance funding could run dry

In at least one case, Justice Department lawyers have asked for a judge to issue a stay while they wait for the government to be fully funded.

A closed sign stands in front of the National Archives on the first day of a government shutdown, Oct. 1, 2025, in Washington.
Julia Demaree Nikhinson/AP

The "lapse in appropriations" has "eliminated the ability of counsel" who worked on a particular case to "handle the litigation and to file the Defandants' motion papers while the lapse in appropriations continues," Assistant U.S. Attorney Lauren Zurier writes.

Attorneys are requesting that the Court allows for them to stay "until the restoration of funding to DOJ and Defendants" in this particular case -- which involves cutting funding for certain organizations by the Administration for their support for DEI issues.

Additionally, money from the National Flood Insurances Program could run dry if the government shutdown is prolonged, according to a letter sent to Congress by the National Association of Relators.

A lapse would mean that Americans can't renew or purchase new flood water insurance and must rely on limited disaster aid, according to Kevin Sears, the president of NAR.

-ABC News' Luke Barr

Oct 01, 2025, 12:01 PM EDT

Democratic funding bill fails once again to pass in Senate

The Democrat funding bill that includes health care provisions failed to pass again on Wednesday morning by a vote of 47-53. Once again, every Democrat voted for it and every Republican voted against it.

The U.S. Capitol building and Washington Monument are seen as the sun rises on October 1, 2025 in Washington.
Eric Lee/Getty Images

-ABC News' Allison Pecorin

Oct 01, 2025, 12:00 PM EDT

Republicans 'need Democratic votes to fund the government': Aguilar

House Democratic leaders said they are "willing to negotiate" on a way to end the government shutdown "if Republicans are serious about addressing the health care crisis they have created."

"Republicans control the Senate, the House and the White House. They need Democratic votes to fund the government, so it's on them to talk with us," House Democratic Caucus Vice-Chair Pete Aguilar said on Wednesday.

Aguilar also criticized House Speaker Mike Johnson, saying his word "doesn't mean much to House Democrats" and he is "simply focused on doing what his conference wants."

House Democratic Chair Rep. Pete Aguilar and Rep. Ted Lieu talk to reporters following a caucus meeting at the U.S. Capitol Visitors Center, October 1, 2025 in Washington.
Chip Somodevilla/Getty Images

He called the shutdown a "shame" and know that "this is a disruption" for many people.

"Let's avoid this shutdown, let's end this," Aguilar said.

Oct 01, 2025, 11:22 AM EDT

White House ballroom construction to continue through shutdown, official says

Construction of the White House ballroom will continue through the government shutdown, according to a White House official.

"There will not be a stoppage of ballroom work when the shutdown occurs," a White House official told ABC News.

As the White House Office of Management and Budget laid out in a memo last week, programs and projects with sources of funding not related to the appropriations that have lapsed will continue. The White House has previously said that the construction of the ballroom is funded by private donations.

"Work will continue to be performed as the funds currently supporting are not tied to a FY26 enacted appropriation," the White House official said.

-ABC News' Michelle Stoddart

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