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    Federal workers squeezed as shutdown drags on: ‘I can’t believe we’re not going to get paid’

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    More furloughs, more anxiety and more economic stress are bearing down on federal employees as the shutdown of the federal government continues into its fourth week with Republicans and Democrats at a standstill on negotiating a budget deal.“There’s no sight of this ending and we’re starting to wonder if we’re going to be made whole and if this is going to continue into the next round of pay, which is what we’re headed into now. On Friday, we will be missing our first full paycheck,” Johnny Jones, council secretary treasurer for the American Federation of Government Employees (AFGE) TSA Council 100, and a TSA employee in Dallas-Fort Worth, Texas, said.“Now people are really starting to get nervous. They’re starting to make preparations for liquidations or they’re making preparations in their lives of how we’re going to survive.”He cited cases of members crying and starting to get desperate, citing the previous shutdown in 2019 where he and other co-workers had to help a co-worker transport her children to Colorado to be with family because she could no longer afford childcare.“I just can’t believe we’re not going to get paid,” Jones added. “ It’s unbelievable. If you worked at McDonald’s and they did this, they could sue you, shut your business down, but you’re working for the government, they cannot pay you, and it’s OK. And this is a problem. People are now going to have to take home debt. People are going to have to take on new things, maybe even work their full shift, pick up their kids and do GrubHub or something, looking for other means of income on the side.”Meanwhile in Washington, the deadlock continues.“I don’t have a strategy,” Mike Johnson, the US House speaker, told reporters on 21 October, as the House of Representatives’ calendar for October remains empty. House members have been on paid vacation since 19 September, when it went on recess.The House speaker’s office said in a statement: “He has consistently said that the House will return to regular legislative session as soon as Chuck Schumer and the Democrats vote to end the shutdown and reopen the government.”Democrats have held firm on a budget that includes extending healthcare subsidies that would prevent health insurance premiums from soaring for millions of Americans, resulting in loss of health insurance for about 15 million Americans due to the subsidy expirations and cuts to Medicaid.Throughout and leading up to the shutdown, federal workers have been subjected to threats by the Trump administration, which have included threatening to withhold back pay to furloughed workers, conducting reductions in force (though a federal court has temporarily blocked the firings), and cutting federally funded infrastructure programs with threats to go after programs deemed priorities for Democrats.Trump referred to Russell Vought, the White House office of management and budget director, as “Darth Vader” on 21 October.“They call him Darth Vader, I call him a fine man. He’s cutting Democrat priorities, and they’re never going to get them back,” Trump said, in claiming the shutdown allows the administration to enact cuts to federal services and programs.“It’s played hell with our psyche, for sure,” said Ruark Hotopp, District 8 national vice-president of the AFGE in the midwest and an employee at the US Citizenship and Immigration Service, on the consistent attacks on federal workers since January 2025, from “department of government efficiency” (Doge) cuts, to rhetoric from Vought and other Trump administration officials criticizing federal civilian employees.Hotopp explained he was in Washington DC lobbying various members of Congress around these issues last week, and the threats were laughed off by Republican Senate staff.“This was a Republican senator’s office, and they reassured me that, while we understand what the president’s saying, that we don’t agree with the president’s position, and it is the full intention of the United States Congress to make sure these those folks get paid. So while that’s reassuring to me, to see this sort of public rhetoric to the folks on the frontlines, that’s not reassuring at all,” he said.“The president is one of the very first people to say this rhetoric needs to be toned down, while he then fans the flames,” added Hotopp. “If we’re going to get back to some sort of normalcy, it has to start with the president himself.”Nicole Cantello, president of the AFGE Union Local 704 and an attorney at the Environmental Protection Agency (EPA), explained the rollout of furloughs had been “chaotic” for federal employees at the agency, with the EPA using leftover funds to stave off furloughs in the beginning of the shutdown, only for mass furloughs to be issued earlier this week.“I’m located here in the Great Lakes, and we are the ones that do all the work to try to protect the Great Lakes. Drinking water for over 40 million people come from the Great Lakes. The people that check the health of the lake to those who find cases against polluters, all those inspectors, they were all just furloughed,” Cantello said. “The human health and environment will definitely be impacted. More pollution will go out.”She expressed concern for the prolonged shutdown and its impact on attrition. Since January 2025, the EPA said its workforce had been slashed from 16,155 employees to 12,448 employees through firings, retirements and buyouts. The Trump administration had attempted to cut dozens more workers at the agency through a reduction in force during the shutdown.“Given everything that’s happened here, who knows who will come back from the furlough?” Cantello said. “I don’t have a good handle on that, but I’m worried that we’re losing and more people and the agency will be rendered even more ineffective.”A spokesperson for the EPA would not comment on or provide numbers on how many workers were furloughed at the agency, but said: “Congressional Democrats are not only unwilling to vote for a clean funding bill, but their goal is to inflict as much pain on the American people as possible. The false narratives being peddled by union bosses and their Democratic allies are nothing more than deliberate fear-mongering designed to create chaos and deceive hardworking Americans.” More

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      Markets rebound amid latest US-China tariff spat as traders look to possible ‘Taco trade’

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      European stock markets have edged higher and cryptocurrencies rebounded amid signs that a new front in the US-China trade war may not be a severe as first feared.Tensions between Washington and Beijing escalated again on Friday and over the weekend, as Donald Trump threatened to impose additional US tariffs of 100% on China starting next month.The US president accused the country of “very hostile” moves to restrict exports of rare-earth minerals needed for American industry. Beijing said it would retaliate if Trump does not back down.However, Trump and senior US officials opened a door to a possible deal with China on Sunday. The president wrote on Truth Social: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”The comments have offered some comfort for investors in Europe, with stocks opening mostly higher on Monday. The UK’s blue-chip FTSE 100 index rose by 0.2% in early trading, while markets in France, Spain, Germany were all up by about 0.5%.Most big cryptocurrencies rebounded after a deep sell-off over the weekend. Bitcoin edged up by 0.3% to more than $115,000, after falling below $105,000 on Friday. Ether had dropped to less than $3,500 but rebounded to about $4,100.Richard Hunter, of the broker Interactive Investor, said investors were hoping for a “Taco trade”, which is the idea that markets rally because “Trump Always Chickens Out” (Taco) of aggressive tariff decisions.“The president’s propensity to shoot from the hip unsettles the investment environment, even though some are already speculating that the Taco trade is alive and well,” he said.However, a heightened sense of uncertainty is pushing investors to gold, which is considered a safe haven asset. Its spot price hit another new high on Monday, rising to as high as $4,078.5 an ounce.Derren Nathan, of the broker Hargreaves Lansdown, noted that US stock futures suggested that there could be “at least a partial rebound” when the market opens later on Monday.“Traders may be banking on a similar pattern where American indexes entered a six-month period of almost unbroken growth helped by a string of trade deals, and growing hopes of a soft-landing for the US economy,” he said.skip past newsletter promotionafter newsletter promotionShares in Anglo-Swedish pharmaceutical firm AstraZeneca – which made a deal with Trump to lower drug prices and avoid tariffs over the weekend – initially rose on Monday morning, before falling back by 0.4%.Fears were still running high in Asia, with main markets tumbling on Monday. Hong Kong’s Hang Seng index dropped by 2.3%, while the Taiwanese market fell by 1.4% and the Thai exchange declined by 2%. In mainland China, the Shenzhen exchange fell by 1.4% and the Shanghai market slipped 0.4%.On Monday, Chinese foreign ministry spokesperson Lin Jian urged the US to promptly correct its “wrong practices” and said it would act to safeguard its interests.Despite the trade tensions, Chinese exports bounced back in September, topping forecasts as it diversified its markets.Chinese exports rose by 8.3% year on year last month, according to official customs data. This was the fastest growth since March, and beat a 6% increase forecast by economists polled by Reuters. It comes after a 4.4% increase in August. More

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      China warns US of retaliation over Trump’s 100% tariffs threat

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      Beijing has told the US it will retaliate if Donald Trump fails to back down on his threat to impose 100% tariffs on Chinese imports as investors brace for another bout of trade war turmoil.China’s commerce ministry blamed Washington for raising trade tensions between the two countries after Trump announced on Friday that he would impose the additional tariffs on China’s exports to the US, along with new controls on critical software, by 1 November.“Wilful threats of high tariffs are not the right way to get along with China,” a spokesperson for the commerce ministry said on Sunday, according to the state news agency Xinhua. “China’s position on the trade war is consistent. We do not want it, but we are not afraid of it.“If the United States insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.”Trump and senior US administration officials opened a door to a China trade deal on Sunday as market futures showed another US stock market drop.“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” Trump wrote on Truth Social.The message came after JD Vance called on Beijing to “choose the path of reason” in the latest spiralling trade fight between the world’s two leading economies that has shaken stock markets.Dow futures showed a drop of 887 points ahead of the stock markets’ open on Monday. The index dropped sharply lower on Friday after reignited fears of a trade war with China when threatened to impose 100% tariffs on Chinese imports after China said it would restrict rare earth exports. The Dow fell 879 points, or 1.9%.“It’s going to be a delicate dance, and a lot of it is going to depend on how the Chinese respond,” Vance said on Fox News’s Sunday Morning Futures. “If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China. If, however, they’re willing to be reasonable,” he said, then the US would, too.The US president shocked the financial markets on Friday when he accused China of “very hostile” moves to restrict exports of rare-earth materials needed by US industry.It prompted heavy falls on Wall Street, where about $2tn (£1.5tn) was wiped off the value of the US stocks.China insisted on Sunday that its latest export controls on rare earths such as holmium, erbium, thulium, europium and ytterbium were legitimate.“China’s export controls are not export bans,” said the commerce ministry spokesperson. “All applications of compliant export for civil use can get approval, so that relevant businesses have no need to worry.”skip past newsletter promotionafter newsletter promotionThe measures were introduced after Washington added a number of Chinese firms to its export control list in a crackdown on the use of foreign affiliates to circumvent export curbs on chipmaking equipment and other goods and technology.The UK’s FTSE 100 share index fell almost 1% on Friday as Trump’s threat sparked a late selloff. The futures market indicates there could be further losses in London and New York on Monday, although there could also be relief that Beijing has not yet retaliated.Bitcoin, which had tumbled 8% after Trump’s post on Truth Social, rose by 4% on Sunday after China refrained from retaliating.Trump’s tariff threat was “a rather unwelcome development for financial markets” as investors had “by and large moved on from the trade and tariff story”, said Michael Brown, a senior research strategist at the brokerage firm Pepperstone.“Chiefly, the question that every man and his dog are attempting to answer is whether this is a credible threat, that the Trump admin might follow through on, or whether this is another example of the ‘escalate to de-escalate’ strategy that Trump used so frequently earlier in the year.“A strategy where outlandish and ridiculous tariff figures are threatened, in an attempt to focus minds, extract concessions from the other party, and ultimately come to agreement faster than otherwise might’ve been possible.” More

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      ‘Using us as political pawns’: federal workers reel over threats of firings and withheld back pay

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      With no end of the federal government shutdown in sight, an estimated 750,000 workers remain furloughed. Hundreds of thousands more are working without pay. They are being “held hostage by a political dispute”, according to union leaders, as Republicans and Democrats remain deadlocked.In the Oval Office on Tuesday, Donald Trump suggested that furloughed employees would not necessarily receive back pay – despite a legal guarantee – prompting further unease throughout the federal workforce. “There are some people that don’t deserve to be taken care of, and we’ll take care of them in a different way,” the US president said.The administration, meanwhile, continues to threaten mass firings if Democrats stand by their demands. “If this keeps going on, it’ll be substantial,” Trump told reporters. “And a lot of those jobs will never come back.”On Friday, Russell Vought, the White House office of management and budget (OMB) director, announced on social media that layoffs had begun. Several federal agencies started announcing layoffs, but details remained scant on how many workers would be impacted.After a brutal year for the federal workforce, employees who spoke to the Guardian expressed growing anxiety over their pay – and the future of their jobs.“This is the third time I’ve been furloughed in my federal career,” said Priscilla Novak, a furloughed federal employee researcher. “But this is the first time there were threats of having people be fired en masse. I’ve been checking my email every day to see if I’m fired yet.”“Even before the shutdown, it’s just kind of been one thing after another for us,” said Peter Farruggia, a furloughed employee at the Centers for Disease Control and Prevention (CDC). “I think a lot of us are expecting the worst, hoping for the best.”“Not knowing when my next paycheck is going to get here is definitely very daunting,” Farruggia, also executive committee chair of AFGE Local 2883, which represents CDC workers, added. “But at least I paid rent this month, so that was probably the most important thing. If some of my other bills go by the wayside, then it is what it is, and I don’t really have any other options to seek out.”“What I’m hearing is a lot of anxiety, confusion, and chaos,” said Brent Barron, a US Department of Labor employee who serves as president of the National Council of Field Labor Locals, which represents workers at the department outside Washington DC. Some staffers don’t even know whether they’re furloughed or not, he claimed, let alone “whether or not they’re going to continue to have a job” for much longer.“There are a lot of employees out there that can’t even miss one check, let alone have this thing drag on for weeks and weeks and weeks,” said Barron. About three-quarters of the labor department has been furloughed. “All we want to do is do our jobs.”A law signed by Trump during his first term, the Government Employee Fair Treatment Act, guarantees all federal workers receive retroactive back pay once a government shutdown is over.“It really baffles me that this administration can just flaunt whatever law and say they don’t have to follow it,” said Barron. “This is a law that was passed in 2019 by Congress and signed by the president. And we all know who was president in 2019.”Trump officials are now facing calls to clarify that the federal government will follow the law, and ensure that every furloughed employee receives back pay.“Given the clarity of the law, there is no place for the Administration to backpedal on its obligation to pay furloughed workers,” labor unions and Democracy Defenders Fund, a watchdog group, wrote to the OMB on Wednesday. “The Administration’s statements appear to be a naked attempt at inflicting pain on innocent parties to gain advantage in the shutdown.”OMB is led by Vought, an architect of the rightwing Project 2025 blueprint. In a private speech in 2023, Vought spoke of wanting to put officials “through trauma” to reduce the capacity of the federal government. “When they wake up in the morning, we want them to not want to go to work.”As the administration continues to threaten mass layoffs, raising the prospect of further cuts beyond the 300,000 federal employees set to be removed from the government by the end of this year through firings and attrition programs, officials have also been ordered by a federal judge to provide specifics on the status of any layoff plans, the agencies affected, and whether any federal employees have been recalled to work to carry out reductions in force.“The American people and the workers who keep this country running are being held hostage by a political dispute, by a petty political dispute that they have nothing to do with,” Greg Regan, president of the AFL-CIO’s transportation trades department, said during a press conference this week. “This is entirely vindictive and the only victims are going to be this country.“We’ve all seen the reports every single time we go through this stupid process of a shutdown, how much the American taxpayers lost. It’s a drain on our economy. It’s a drain on our safety. It’s a drain on the people that live here. So we need to put this to an end.”‘People cannot focus on their jobs’Almost all Transportation Security Administration (TSA) employees are required to work without pay during shutdowns, in a bid to minimize the threat of disruptions at key travel hubs like airports.The uncertainty has been particularly unnerving for newer, lower-paid employees, according to Cameron Cochems, a lead TSA officer and vice-president for AFGE Local 1127, which represents the administration’s employees in Idaho.Workers are worried about when they start missing paychecks, he said, adding that several have asked where to get low interest loans to float them through missed paychecks.“It feels kind of like there’s just a train coming and you can hear the whistle blowing, but every day it gets a little closer and closer to us,” Cochems told the Guardian. “And right now we can barely hear the whistle because we’re still focused on our jobs, we’re still focused on the mission, which is protect the nation’s transportation system to ensure freedom of movement for people in commerce.“But once that paycheck doesn’t come, I think that that train whistle is going to get louder in everyone’s heads, and it could get so loud that people cannot focus on their job because they’re focusing on things like ‘The bank is calling me for the fifth time today’, or ‘I don’t know how to pay for my daycare,’ things like that.”Threats made about federal workers not being entitled to back pay by Trump and his top officials have heightened anxieties and fears and “thrown a lot more people for a loop, especially the people that are disadvantaged, single parents or living paycheck to paycheck”, added Cochems.“It just feels like they’re intentionally using us as political pawns, and they intentionally want to make our jobs and lives unstable,” he said.“Even worse than morale is the future implication for how our government runs,” added Novak. “I think having a strong civil service that is not politically motivated is the most effective to render modern services for our citizens. Furloughed workers want to go back to work. We need Congress to pass a budget.”The White House and office of management and budget did not respond to multiple requests for comment. More

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      Trump news at a glance: layoffs for federal workers begin and president threatens China with tariffs

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      Mass firings of US federal workers have begun, as Republicans work to exert pressure on Democrat lawmakers to end a government shutdown. The White House budget office said the layoffs were “substantial”, with unions for federal workers taking the matter to court. President Donald Trump said of the job losses “it’ll be a lot” and suggested those losing their jobs would be in areas that were “Democrat oriented”.The government shutdown comes as the US president has revived the trade war with China, this time promising to increase tariffs on Chinese imports by 100%. His administration is also considering using visa restrictions and sanctions against countries that support the International Maritime Organization’s “net zero framework” proposal.White House announces federal worker layoffsThe White House announced layoffs of federal workers on Friday, making good on a threat it had made in response to the US government shutdown, which now appears likely to stretch into a third straight week. Russell Vought, the director of the White House office of management and budget, wrote on social media that “RIFs have begun”, referring to the government’s reduction-in-force procedure to let employees go.Read the full storyTrump threatens 100% China tariffsDonald Trump has threatened to impose additional US tariffs of 100% on China from next month, accusing Beijing of “very hostile” moves to restrict exports of rare earths needed for American industry. Wall Street fell sharply after the US president reignited public tensions with the Chinese government, and raised the prospect of another acrimonious trade war between the world’s two largest economies.Read the full storyNational guard troops seen on Memphis streetsNational guard troops were seen patrolling in Memphis for the first time on Friday, as part of Donald Trump’s controversial federal taskforce, amid fierce legal challenges as he was blocked from sending troops to Chicago and a court ruling was awaited in Portland, Oregon.Read the full storyMIT rejects White House proposal to overhaul policiesThe Massachusetts Institute of Technology (MIT) has become the first US university to formally turn down a Trump administration proposal that would overhaul university policies in return for preferential access to federal funding.Read the full storyWhite House slams Trump’s perceived Nobel peace prize snubThe White House has denounced the Norwegian Nobel committee’s decision to award the Nobel peace prize to someone other than Donald Trump.“The Nobel committee proved they place politics over peace,” wrote Steven Cheung, a Trump aide and the White House’s director of communications.Read the full storyWhat else happened today:

      Donald Trump had what he has described as a “semiannual physical” at the Walter Reed national military medical center.

      Up to 40 US academics have been dismissed or disciplined after rightwing campaigns targeted their comments on Charlie Kirk’s assassination, creating a “climate of fear” on campuses.

      Leading New York Democrats have rallied behind Letitia James a day after she was indicted on mortgage fraud charges by a federal prosecutor appointed by Trump.
      Catching up? Here’s what happened on 9 October 2025. More

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      Small US college towns reel amid Trump immigration crackdown: ‘They need international students’

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      For a town of 20,000 residents a few miles from the Indiana state line in rural Ohio, the city of Oxford boasts an outsized number of international eateries.On High Street, the Phan Shin Chinese restaurant sits a few doors down from the Happy Kitchen, another Chinese food joint, which is next door to the Krishna Indian restaurant. There’s a French bakery and even a Uyghur restaurant selling central Asian fare.The diversity of international restaurants mirrors the student population attending Miami University, which in 2019 had a student body including more than 3,000 international students.But in recent years, the number of international students coming to study at US colleges has plummeted, a trend that could have devastating consequences for small college towns.It was the large number of Chinese students attending Miami University that prompted Fei Yang to open the MImian Chinese restaurant in Oxford, a full 60 miles from his home, in 2018.“There used to be 2,000 to 3,000 [Chinese] students but now there is like 300, 400 maybe,” says Yang. “Covid-19 stopped a lot of people coming. Before we used to make real Chinese food, now we make the American versions.”In fall 2019, Miami University admitted 2,895 international students, mainly from China, Vietnam, India, and elsewhere – last year, the number plummeted to 750. Since international students at Miami University are not receiving scholarships, they typically pay more than $65,000 in tuition, fees, housing and food, according to 2024-25 estimated cost of attendance figures, which represents a potential loss of about $140m for the university, local businesses and the thousands of workers they collectively employ.Across the US, an estimated 150,000 fewer international students are expected to study at US colleges and universities this fall compared to last year, a 40% drop.While the reasons are varied, the Trump administration’s response to protests on campuses against Israel’s war on Gaza has played a major role in fueling the falloff by driving fear of arrest and deportation into many would-be incoming international students.In June, the state department announced more severe screening and vetting processes for international students intending on studying in the US, including ordering applicants to turn their social media profiles public.Students from Turkey, Palestine, and Iran have been detained, imprisoned and deported or self-deported for expressing their first amendment rights, rights that are protected by the US constitution, regardless of whether they are citizens of the country or not. About 6,000 student visas have been revoked this year with some students seeing their visas revoked for alleged minor wrongdoings such as speeding.International student enrolment, however, has been in decline since before the current administration’s crackdown. The tariffs regime initiated on China during the first Trump administration, as well as Covid-19 pandemic travel restrictions in 2020, prompted a massive fall in students traveling to the US for higher education five years ago. In the years since, Chinese students have increasingly chosen to study in the UK and Australia in place of the US.While mid-sized and large cities and wealthy small towns such as Ithaca, New York, – home to Cornell University – can typically take the financial hit from the loss of thousands of international students due to their diversified economies, less affluent towns, whose economies have never fully recovered from the loss of students on-site during the pandemic, remain imperiled.According to the US Department of Commerce, international students are thought to have contributed around $50bn to the US economy in 2023 in tuition, rent, food, taxes and a host of other ways. In Ohio, Kentucky, and Iowa, which rank among the lowest states for GDP growth in the country, and which are Trump strongholds, their economies are set to lose as much as $200m, $45m and nearly $43m respectively. Florida’s economy could see losses reaching as much as $243m.“We tend to think that foreign students only go to big Ivy League schools in big cities. But if you look at a recent Brookings Institution report, it is clear that every school, small, medium and large, in every town or city – small, medium or large need income from international students,” says Tara Sonenshine, Edward R Murrow professor of practice in public diplomacy at Tufts University.In West Lafayette, Indiana, the 50,000 students who attend Purdue University make up the overwhelming majority of the city’s population. Almost one in four of those at Purdue in 2024 were international students, most paying full tuition and board costs. These students, many who attend to learn cutting-edge agriculture practices, help employ more than 10,000 people, making Purdue University the largest employer in the region.It’s a similar story for rural Illinois, where one-quarter of students at the University of Illinois Urbana-Champaign campus are from overseas – one of the highest ratios of any private or public college in the country. There, an international student studying for a four-year undergraduate degree can net the college and offshoot businesses about $200,000 in tuition and other fees.In Oxford, Ohio, one of the biggest issues international students help local businesses with is providing custom during the six-week period from mid-December to the end of January when there are no classes at Miami University. At that time, other than permanent residents, the only people in town are international students.“Our business community is very dependent on Miami University students. Oxford’s population is about 20,000, of which 17,000 or more are Miami University students,” says Oxford city manager Doug Elliott.“We have a lot of homes that were converted into student housing. That’s typical for small college towns like us.”Elliott notes that aside from the financial benefit, international students bring energy and diversity in the form of festivals and gatherings to parts of the US that would otherwise never get to experience the wider world.“Cutting off visas for international students, combined with demographic shifts in America and the declining enrolment in college, in addition to the general disdain for immigrant populations coming here,” says Sonenshine, “would all add up to chaos and potential closures of small schools who rely on a broader pool on enrolment.” More

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      Americans and US food banks brace for Trump cuts: ‘Battling hunger is no longer a priority’

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      Americans are bracing for the impact of the largest cuts to the government’s food assistance program for low-income people in US history that have begun to take effect as a result of Donald Trump’s One Big Beautiful Bill Act.Effective 1 October, the beginning of fiscal year 2026, funding for Snap-Ed, part of the Supplemental Nutrition Assistance Program (Snap) that provided funding for food banks across the US, is being eliminated. The cuts are part of the sweeping spending bill Trump signed in July.A report this month by the Center on Budget and Policy Priorities noted “some low-income families will see their food assistance terminated or cut substantially (or will be denied benefits) this fall, though most current participants will face cuts when their SNAP eligibility is next recertified,” with estimates that 4 million Americans in a typical month will lose some or all of their Snap benefits when the cuts are fully implemented.A Snap recipient in Camden county, New Jersey, who works as a cake decorator at a small business and requested to remain anonymous, said their Snap benefits were cut off in September without receiving a notice.“Snap was my way to finally not pay half to three-quarters of my paycheck on groceries. Now, I have nothing in my house regularly and it just feels like no one wants to help people any more,” they said. “I only got a little over $110 a month, but it helped tremendously.”They said it’s made it more difficult to work at a job they love, but that doesn’t pay enough.Jessica Griffin of Fort Smith, Arkansas, a mother of three, said she lost her job about five months ago and has struggled to find another, with her family relying on her husband’s income.After rent and utility bills, there isn’t much left over to buy groceries and she doesn’t have reliable transportation to get to food banks, she said.“I used to be able to buy $100 worth of groceries a week to feed a family of five, now even with one child out of the house $100 will only go a couple days,” she said. “The rent rates are so high now as well as groceries that families can barely afford to feed their kids and keep a roof over their heads at the same time. So it almost feels like we have two options, to either live in a house or live on the street and not starve.”View image in fullscreenFunding cuts to states, which will be expected to share costs of Snap for the first time as well as cover more administrative costs, are phased for fiscal years 2027 and 2028, but several provisions and changes to Snap are being implemented as states have to grapple with drastic costs shifted on to them from the federal government.“States don’t have enough administrative staff or capacity to handle this,” said Gina Plata-Nino, interim Snap director at the Food Research and Action Center. “I think we’re on a downward path. Polling and data is showing that one of the biggest obstacles that people are having in being able to eat is just how expensive food is at the moment. This is a direct result of tariffs and other policy choices that the administration has made. It’s something that everyone, regardless of income, can understand.”The looming Snap cuts come as food prices are still rising under the Trump administration and are expected to continue rising due to tariffs and labor shortages in the food industry due to Trump’s immigration policies.From January 2022 to August 2025, overall food cost in the US increased by about 17.8%, according the consumer price index, and has increased 2.0% since January 2025, when Trump took office. Trump’s tariffs are expected to drive further increases, with food prices set to rise 3.4% in the short term and stay 2.5% higher in the long run, according to the Yale Budget Lab.Food banks have been struggling across the US to keep up with demand and manage rising food prices, while bracing for further cuts, higher prices, and a surge in demand once Snap cuts begin taking effect.At a food bank in Charlottesville, Virginia, Jane Colony Mills, executive director of Loaves & Fishes, said the food bank has “experienced a 20% increase in the numbers of people coming for food assistance in 2025, likely driven not only by the cost of groceries in our community, but by the overall cost of living in Charlottesville and Albemarle area.”She noted their food supply has decreased as well, since they rely on food that stores cannot sell, and have also been affected by cuts at the US Department of Agriculture (USDA) to programs that support food banks. Colony Mills noted Snap cuts haven’t taken effect yet in Virginia, but local social service departments are bracing for those reductions or cancellations starting 1 October.“People who rely on these incremental supports will be struggling even more to provide food for their households each month,” she added.In Washington, the Thurston County Food Bank said they are bracing for significant cuts to Snap that will increase demand and make it more difficult to meet the current demand, let alone handle increases. They have already had to lay off staff positions funded by the Snap-Ed program that was cut by the Trump administration.“We have been told to brace for cuts that could be as much as 20% to 25% of the food we received in prior years. For us, 25% is $1m worth of food in 2024 prices, so with rising food costs, we can assume that is a gap of well over a million dollars,” said executive director of the Thurston County Food Bank.Ahead of the cuts to Snap and rising food prices, the Trump administration announced the cancellation of the annual hunger survey that measures food insecurity in the US and food researchers at the USDA were put on leave.USDA deferred comment to a press release, where they claimed “these redundant, costly, politicized, and extraneous studies do nothing more than fear monger.”The decision is viewed by anti-hunger advocates as an effort by the Trump administration to obfuscate the impacts of their cuts to Snap and other policies affecting food insecurity for Americans.“By cancelling the survey, USDA is sending a signal that tracking and battling hunger is no longer a priority,” Eric Mitchell, president of the Alliance to End Hunger, said in a statement. “It is further troubling that the decision comes amid predictions that hunger may increase in the coming months and years. Hunger will not disappear simply because it is no longer tracked.” More

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      Why Trump is backing Argentina’s Thatcherite economics | Heather Stewart

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      “We’re backing him 100%. We think he’s done a fantastic job. Like us, he inherited a mess.” Donald Trump gave his enthusiastic endorsement to Javier Milei’s radical economic experiment when the pair met in New York last week.The US has declared itself ready to offer more than rhetorical support to the chainsaw-wielding Argentinian president in the coming days, as Buenos Aires stands on the brink of a fresh financial crisis.The US Treasury secretary, Scott Bessent, said the US was “ready to do what is needed”. He suggested the Federal Reserve could offer Buenos Aires a $20bn (£15bn) dollar swap line – a crucial crisis-fighting tool – or the US could even buy the country’s bonds directly.US administrations have rallied support for Argentinian governments in the past – Bill Clinton was a fan of Carlos Menem’s 1990s reforms, for example. But Trump’s readiness to wade in directly is the latest example of his determination to use economic tools for political ends: in this case, propping up an ideological ally.Milei swept into power two years ago, on a wave of frustration and discontent with the economic status quo.Like Trump and Boris Johnson, he eschewed the usual conventions of politics and promised to smash up the establishment and remake the state on behalf of the people.But while Milei’s political playbook may echo Trump’s, with its embrace of chaos and showbiz, his economic policies owe something to another radical with big hair – Margaret Thatcher, whom the Argentinian president has called “brilliant”.Like the Thatcher governments in the UK, Milei sees slaying the dragon of inflation as an overriding priority. The challenge in Argentina is on a completely different scale to 1980s Britain, however: the inflation rate peaked at more than 25% a month soon after Milei came to power.But aspects of his approach, including a systematic onslaught on trade union rights, public spending cuts and a wave of privatisations, have echoes of Thatcherism.Despite lacking a parliamentary power base, Milei has succeeded in cutting deep into pensions and public sector wages – and more than 48,000 public sector workers have lost their jobs.He travelled to CPAC, the Conservative Political Action Conference, in the US, to pose on stage next to a chainsaw-wielding Elon Musk, whose Department of Government Efficiency (Doge) was partly inspired by Milei’s aggressive style.Argentina’s tough policies have won plaudits from the International Monetary Fund (IMF), which granted a new $20bn lifeline to Argentina in April.On stage at the IMF’s meetings in Washington that month, its managing director, Kristalina Georgieva, proudly pinned on to her green jacket a tiny silver chainsaw badge, handed to her by Argentina’s minister for deregulation, Federico Sturzenegger.But while Milei’s “shock therapy” may have met with approval in Washington – and indeed in financial markets – the Argentinian economist and campaigner Lucía Cirmi Obón highlights its human impact.“The macroeconomic changes implemented by Milei have not shown – nor do I believe they will show – any positive impact on people’s quality of life. In practice, what we are seeing is an economic recession,” she told the Guardian.“The main reasons are that real wages fell, and the opening of imports also dismantled a large part of national industry. On top of that, there were cuts to the number of people receiving a pension, support for childcare, for people with disabilities who used to receive pensions. All of the policies the population used to receive from the state have been reduced.”skip past newsletter promotionafter newsletter promotionUnemployment has risen by two percentage points, but she argues that there is also significant hidden unemployment – with former factory workers crowding into poorly paid gig-economy jobs such as Uber driving, for example. Household debt is rising, and because many of the occupations targeted by cuts are female-dominated, the gender pay gap has widened, undoing six years’ worth of progress.Obón adds that while Milei’s approach was meant to unleash the corporate sector, to open the way for surging economic growth, investment as a share of GDP has actually fallen.Meanwhile, determined to squash inflation, Milei has maintained the peso’s link to the dollar – a trigger for so many crises in Argentina over the years.For several decades, the peso has been pegged – within limits – to the greenback, which circulates within Argentina as an alternative currency, in which many citizens like to hold their savings, especially in times of trouble.Milei had advocated full dollarisation during the election campaign – a policy that would leave Argentina without the right to set its own interest rates. When he came to power and allies rejected that plan, he instead devalued the peso by more than half, willing to wear the resulting inflation in the hope of stimulating exports.But the currency has nevertheless come under continued selling pressure – exacerbated by the political uncertainty unleashed when Milei suffered a disastrous showing in local legislative elections in Buenos Aires province, which he had himself called a “life or death battle”.Since those local elections, and amid a mounting clamour of corruption claims against Milei’s powerful sister, Karina, the peso sell-off has accelerated. The central bank burned through more than $1bn of reserves in a week trying to prop up the currency, before Bessent announced Washington was ready to step in.As well as political fellow feeling, some experts suggest geopolitics may have been another motivation for Washington’s intervention, with China becoming increasingly influential in Latin America.The peso rallied and the markets calmed after Bessent’s comments, but as the costs of “shock therapy” bite and Milei looks to crucial midterm elections in October, the Argentinian public face a volatile period ahead. More

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      The American system is badly broken | Bernie Sanders

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      Let’s take a deep breath and, for one moment, forget about Donald Trump, Jimmy Kimmel, the UN, Charlie Kirk, Gaza, a government shutdown and the other crises that we face.Let’s talk instead about the reality which the corporate-controlled media and the corporate-controlled political system don’t talk about very much.What we are witnessing right now is the rise of two Americas. One for the billionaire class. And one for everybody else.In one America, the richest people are becoming obscenely richer and have never, ever had it so good. That America is overflowing with unimaginable wealth, greed and opulence that makes the Gilded Age seem very modest.And then there is a second America – an America where a majority of people live paycheck to paycheck, struggling to secure the very basic necessities of life – food, healthcare, housing and education.The simple truth is that never before in our history have so few had so much wealth and power while so many live in economic desperation.In the first America, one man – Elon Musk, the richest man in the world, worth more than $480bn, owns more wealth than the bottom 52% of American households. After spending $290m to put Trump back into the White House, Musk has become more than $180bn richer since election day. That’s a pretty good return on his investment.But that’s apparently not good enough for Musk. In order to keep him “motivated” as CEO, Tesla’s board proposed giving him a $1tn pay package if he meets certain goals. A trillion dollars.Jeff Bezos, the fourth wealthiest person in the world, has a fortune of $233bn. He can sail to Venice on his $500m yacht for his reported $50m wedding, where he gave his wife a $3m-$5m ring – because, among other things, his effective tax rate is just a reported 1.1%.Mark Zuckerberg, the third richest person in the world, is worth $258bn. He has spent $110m to buy 11 homes in Palo Alto, California, to create his own private compound, and another $270m for more than 2,300 acres in Hawaii with a 5,000 sqft underground bunker and three yachts reportedly worth more than $530m.Larry Ellison, the second wealthiest person in the world – worth $377bn – recently became nearly $100bn richer in a single day. He owns a private island in Hawaii and a fleet of jets, and now he’s reportedly trying to buy up major media companies such as Warner Bros and CNN.Together, these four men alone are worth more than $1.3tn. But it’s not just them. The top 1% now owns more wealth than the bottom 93%.The 1% lives in a world completely removed from ordinary Americans. They don’t ride overcrowded subways to get to work or sit in traffic jams to get home. They fly on private jets and helicopters they own. They live in mansions all over the world, send their kids to the most elite private schools and vacation on their own islands. And, for fun, some spend millions to fly off into space on their own rocket ships.And then there is the other America, where the vast majority of our people live. For them, the economy is not just broken, it is collapsing. In this America, despite a massive increase in worker productivity, real weekly wages for the average American worker are lower today than they were more than 52 years ago.In this America, people are unable to afford a doctor’s visit (if they’re lucky enough to find one); are paying over half of their limited incomes on rent or a mortgage; and are unable to afford the outrageous cost of childcare or send their kids to college. In this America, the price of vegetables, fruit and other healthy foods is beyond the budget for many.For most Americans, the system is not just broken, it is collapsing and is increasingly resembling life in the third world.Everyone needs healthcare. Yet today, more than 85 million Americans are uninsured or underinsured – a number that will rise by at least 15 million under Trump’s so-called big, beautiful bill.Everyone needs housing. Yet today, nearly 800,000 Americans are homeless and more than 20m households pay more than 50% of their limited incomes on rent or a mortgage. Since 2000, average rents have more than doubled and the median price of a home has soared to more than $435,000.Everyone needs a decent education. Yet today, our childcare system is broken and wildly expensive. Many of our public schools are dilapidated with teachers underpaid and underappreciated, and American students are falling behind in math, science and reading compared with their international peers. College education is unaffordable for millions and vocational schools fail to train the workers we desperately need.Everyone needs a secure retirement. Yet, nearly half of older workers have no retirement savings and no idea how they will ever retire with any shred of dignity or respect. Meanwhile, 22% of seniors are trying to survive on an income of less than $15,000 a year.Enough is enough.As supreme court justice Louis Brandeis said in 1933: “We can have democracy in this country or we can have great wealth concentrated in the hands of the few, but we cannot have both.”That warning is even more relevant today.In this pivotal moment in American history, we must create a government and an economy that works for all, or we will continue sliding into oligarchy – where the billionaire class controls our government, our economy and our future.Let me say to my fellow Americans: I know day-to-day life can take a toll, but we must not allow ourselves to fall into despair. If we do not allow ourselves to be divided up by Trump and his oligarch allies, we can change the path we are on.The choice is clear. Let’s stand together for democracy and justice. More