Republicans weigh big cuts as US senators try to reach deal

Leveraging govt shutdown to slash federal workforce could backfire politically on party

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Republicans wrestled with how aggressively to leverage the government shutdown to slash the federal workforce, openly debating a hardball tactic that could force Democrats to cave but carries political risk of backfiring.

At the same time, a group of moderate Republicans and Democrats huddled on the Senate floor on Oct 1 to search for a way out of the shutdown that could offer face-saving concessions to both parties and allow the government to reopen, at least temporarily.

Among the options the senators could be overheard discussing were a very short stopgap Bill while an extension of expiring Obamacare subsidies is negotiated.

“I was throwing out some ideas that will give them room, give us room, and we all agree that we'll continue talking,” Arizona Democratic Senator Ruben Gallego said. “No agreements were made.”

US President Donald Trump and his budget director Russell Vought are capitalising on the moment, moving early on Oct 1 to halt US$18 billion (S$23 billion) in federal funding for infrastructure projects in New York City, including for the Second Avenue Subway project and Hudson Tunnel Project.

Mr Vought cited concerns over diversity and equity practices rather than the shutdown, but the action directly hit constituents of Senate Democratic leader Chuck Schumer and House Democratic leader Hakeem Jeffries, both of whom represent New York in Congress.

Mr Trump warned earlier this week he would use a funding lapse to target “Democrat things”.