Washington, Oct 4 (NationPress) The US government shutdown has now entered its third day, with Republicans and Democrats still unable to find common ground.

A new round of votes by Republican and Democrat Senators was unsuccessful on Friday, as Democrats insisted on reversing healthcare cuts included in the "Big Beautiful Bill" passed earlier this year.

Republican leaders and the White House claim that the Democrats are pushing for healthcare subsidies for illegal immigrants, a claim that Democrats vehemently deny, labeling it as misinformation from the Trump administration.

On Friday, the Trump administration announced the suspension of $2.1 billion in federal funding intended for a rail transit project in the Democrat-led city of Chicago.

Russell Vought, the Director of the Office of Management and Budget, revealed the funding freeze on social media platform X, stating it was “on hold to ensure funding does not support race-based contracting.”

Earlier this week, the administration also froze $26 billion allocated for 16 states that lean Democratic, which includes $18 billion earmarked for transit projects in New York, the home state of House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer.

During a press conference on Friday, White House Press Secretary Karoline Leavitt justified the funding halt for Chicago.

“We have paused $2.1 billion for infrastructure projects in Chicago, particularly the red line extension and modernization projects. This decision stems from our concerns regarding the Biden administration allegedly allocating taxpayer funds for construction based on DEI (Diversity, Equity, and Inclusion). The Department of Transportation is currently reviewing race-based contracting for potential unconstitutionality,” she explained.

Leavitt also reiterated the potential for substantial layoffs of federal employees if Democrats persist in obstructing the Republican-led bill.

“If this shutdown continues, layoffs could unfortunately follow. The Democrats are the ones providing this opportunity to the administration, and no one wants to see layoffs happen. However, tough decisions are sometimes necessary in government,” she stated.

In a post on Truth Social on Thursday, Trump referred to the shutdown as an “unprecedented opportunity.”

Approximately 750,000 federal employees have been furloughed, with many others compelled to work without compensation.

Essential services, such as border security, law enforcement, and air traffic control, remain operational for the time being, but programs like food assistance, government-funded pre-schools, food inspections, and operations at national parks could soon face disruptions.

Military and civilian personnel are not receiving pay during the shutdown, including around 13,000 air traffic controllers who are working without remuneration. The Department of Transportation has also suspended additional operations, such as the hiring and training of new air traffic controllers.

If the shutdown persists, air travel may encounter difficulties as many employees may be forced to forgo pay and may not report for duty.

The Smithsonian Institution’s museums and National Zoo, key tourist destinations in Washington, have announced they will remain open until October 11.

This marks the first government shutdown in seven years, the last occurring during Trump's first term and lasting for 35 days, the longest in history.