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U.S. President Donald Trump has signaled that federal employees could face layoffs and some government projects may be permanently scrapped if the ongoing partial government shutdown persists. Speaking in an interview with the One America News (OAN) network, Trump emphasized that Democrats in Congress bear responsibility for the impasse, which began Wednesday after lawmakers failed to finalize a funding deal. Essential services remain operational, but many federal agencies have been forced to scale back operations.
Trump stated that projects supported by Democrats could be eliminated, asserting he has authority to cancel spending he deems unnecessary. “We could cut projects that they wanted, favorite projects, and they’d be permanently cut,” he said, stressing that some programs should never have been approved in the first place.
The president also suggested that revenue from his administration’s tariffs could eventually fund direct payments to Americans. Trump claimed tariff revenues could grow to $1 trillion annually, a figure far higher than Treasury Secretary Scott Bessent’s recent estimate of $500 billion. U.S. Treasury data shows the current federal debt at $37.64 trillion, with Trump warning it could rise to $38 trillion. He said part of the tariff income could help reduce the national debt while also considering rebates for citizens.
Trump floated the idea of issuing rebate checks worth $1,000 to $2,000 per person, describing them as a type of “dividend to the people of America.” He argued that such distributions would return tariff gains directly to U.S. households, while bolstering economic support during a period of political and financial uncertainty.
The government shutdown adds to mounting pressure in Washington as debates over federal spending, tariffs, and debt continue to intensify. Trump’s comments highlight his strategy of leveraging tariff revenues to balance fiscal concerns with promises of direct benefits for American taxpayers.
