President Donald Trump on Thursday signaled he intends to use the ongoing government shutdown to target federal agencies and projects linked to Democrats, describing the situation as an “unprecedented opportunity” to shrink parts of government.

The warning came after his administration froze about $18 billion earmarked for two major infrastructure projects in New York City and canceled another $8 billion in climate-related spending in Democratic-leaning states. Both announcements were made by Russell Vought, director of the Office of Management and Budget, rather than the agencies overseeing the programs.

Trump wrote on Truth Social that he will soon meet with Vought “to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut.” He added that they will also decide “whether or not those cuts will be temporary or permanent.”

The president said Democrats had effectively handed him the chance to pursue these cuts, adding, “I can’t believe the Radical Left Democrats gave me this unprecedented opportunity.”

The shutdown, now in its second day, began when Congress failed to approve a funding measure before the fiscal year ended Tuesday. Republicans, who control both chambers and the White House, pushed for a stopgap bill that would maintain spending until late November. Democrats insisted on including an extension of enhanced Affordable Care Act tax credits, which are set to expire at the end of the year.

Treasury Secretary Scott Bessent criticized Democrats’ stance during an interview on CNBC, saying they are negotiating like “terrorists.” He also said he was confident there would be no deal over the health care subsidies.

The White House has already directed agencies to prepare for layoffs. Vought’s office issued a memo last week warning of possible firings if a shutdown occurred. On Wednesday, Vice President JD Vance and Vought said dismissals could begin within days. White House press secretary Karoline Leavitt added that the number of cuts was “likely going to be in the thousands.”

Asked why the administration was preparing to fire workers instead of furloughing them, Vance said no final decision had been made but added, “We might have to take extraordinary steps, especially the longer this goes on.”

Shutdowns in the past have typically left hundreds of thousands of federal employees on unpaid leave, with back pay provided once the government reopened. This time, the administration is considering permanent reductions in staff and programs.

The political battle has sharpened as the top Democrats involved in the dispute, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both represent New York, where the halted infrastructure projects are located.

Trump also praised Vought as “he of PROJECT 2025 Fame,” referring to the conservative blueprint for reshaping the federal government that Vought helped draft. Though Trump distanced himself from the plan during his campaign, his remarks Thursday signaled alignment with its goals.

No votes were scheduled in Congress on Thursday due to the Yom Kippur holiday, meaning the shutdown will extend into at least Friday. Senate Majority Leader John Thune said his chamber will vote again on a Republican stopgap bill then, but prospects for a deal remain uncertain.

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