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Trump Floats Federal Layoffs During Shutdown, Facing Legal Pushback

On the second day of the partial government shutdown, President Donald Trump said he is weighing permanent cuts to the federal workforce, a move that could trigger a prolonged legal battle.

In a post on Truth Social Thursday morning, Trump revealed he was meeting with his former budget director Russell Vought to determine which agencies could face layoffs. He called the shutdown an “unprecedented opportunity” to target what he described as “Democrat agencies.”

“I have a meeting today with Russ Vought, he of Project 2025 fame, to determine which of the many Democrat Agencies, most of which are a political scam, he recommends to be cut, and whether or not those cuts will be temporary or permanent,” Trump wrote, referencing the conservative policy blueprint Vought helped author.

While presidents typically use shutdowns to apply pressure on Congress to reach a funding deal, Trump suggested he may use the moment to permanently shrink parts of the federal government. White House Press Secretary Karoline Leavitt told reporters the administration is reviewing agencies “that don’t align with this Administration’s values” and described them as “a waste of taxpayers’ dollars.”

Federal law, however, may complicate Trump’s plan. Traditionally, shutdowns lead to furloughs, in which many government employees are temporarily sent home without pay until Congress restores funding. Permanent reductions in force, or RIFs, are normally carried out under a separate legal process that does not apply during shutdowns.

On Wednesday, unions representing hundreds of thousands of federal workers filed a lawsuit seeking to block any attempt to fire employees while the government remains unfunded. The American Federation of Government Employees argued in its filing that the administration lacks legal authority to enact permanent layoffs during a shutdown, citing the Antideficiency Act of 1870 and other statutes governing federal employment.

Despite the legal questions, some administration officials defended Trump’s stance. OMB spokeswoman Rachel Cauley said reductions in force fall under the president’s constitutional powers. “Issuing RIFs is an excepted activity to fulfill the President’s constitutional authority to supervise and control the Executive Branch,” she said in a statement.

Meanwhile, the shutdown has already forced agencies such as the Environmental Protection Agency, Education Department, Commerce Department, and Housing and Urban Development to send home large portions of their staff. On Thursday afternoon, the website of the Council of the Inspectors General on Integrity and Efficiency went offline, raising concerns about weakened oversight of waste and fraud across the federal government.

Vice President J.D. Vance and other senior officials have echoed Trump’s calls for workforce reductions, portraying them as necessary to preserve essential services. But the unions’ lawsuit, filed in federal court in California, seeks an injunction to block any layoffs and a ruling declaring that the administration exceeded its authority by even preparing agencies for cuts.

With no funding deal in sight, the standoff has set up a high-stakes legal and political clash over the scope of presidential authority during a government shutdown.

Business

Fraudsters are increasingly using AI-generated images and videos to trick people into handing over sensitive personal and financial information, according to FraudSMART, the financial crime awareness initiative operated by the Banking and Payments Federation Ireland (BPFI). The organisation has reported a rise in online adverts promoting fake, State-backed investment schemes. These scams often use fabricated images of well-known politicians and business figures to make the offers appear legitimate and encourage users to click on registration links. Niamh Davenport, head of financial crime at BPFI, said scammers are deliberately exploiting recent media coverage of a planned State-backed savings and investment scheme to give their frauds a sense of credibility. “They often claim the scheme is open to everyone, but that places are limited and being ‘snapped up’ fast, in order to pressure people to act quickly,” she said. “They typically promise guaranteed returns or a guaranteed monthly income.” FraudSMART said that while anyone can be targeted, people in their early 50s are particularly vulnerable to investment scams. This age group is often focused on retirement planning, making them more receptive to financial offers that appear secure or high-yield. According to the organisation, most scams follow a similar pattern. Victims are first directed to click a registration link and complete a short online form providing their contact details. They are then contacted by someone posing as a financial adviser, who urges them to make an immediate “security deposit” to secure participation in the scheme. Once a payment is made, the money is quickly moved through multiple accounts, often overseas, making recovery extremely difficult. Davenport warned that scammers are becoming more sophisticated in their use of technology, particularly AI tools that allow them to create realistic but entirely fake promotional content. These materials are designed to mimic legitimate financial advertisements and build trust with potential victims. Recent figures from An Garda Síochána show investment fraud rose by 20% last year, with losses exceeding €20 million. The scale of individual scams varies widely, ranging from smaller crypto-related frauds involving a few hundred euro to large-scale investment schemes where victims lose tens of thousands. FraudSMART is urging the public to remain cautious when encountering online investment advertisements, especially those promising guaranteed returns or requiring urgent action. It also advises consumers to avoid sharing personal information with unverified sources and to be wary of pressure tactics designed to rush financial decisions. Authorities continue to warn that fraudsters are adapting quickly, using advanced digital tools to target victims across multiple platforms.

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Business

Fraudsters are increasingly using AI-generated images and videos to trick people into handing over sensitive personal and financial information, according to FraudSMART, the financial crime awareness initiative operated by the Banking and Payments Federation Ireland (BPFI). The organisation has reported a rise in online adverts promoting fake, State-backed investment schemes. These scams often use fabricated images of well-known politicians and business figures to make the offers appear legitimate and encourage users to click on registration links. Niamh Davenport, head of financial crime at BPFI, said scammers are deliberately exploiting recent media coverage of a planned State-backed savings and investment scheme to give their frauds a sense of credibility. “They often claim the scheme is open to everyone, but that places are limited and being ‘snapped up’ fast, in order to pressure people to act quickly,” she said. “They typically promise guaranteed returns or a guaranteed monthly income.” FraudSMART said that while anyone can be targeted, people in their early 50s are particularly vulnerable to investment scams. This age group is often focused on retirement planning, making them more receptive to financial offers that appear secure or high-yield. According to the organisation, most scams follow a similar pattern. Victims are first directed to click a registration link and complete a short online form providing their contact details. They are then contacted by someone posing as a financial adviser, who urges them to make an immediate “security deposit” to secure participation in the scheme. Once a payment is made, the money is quickly moved through multiple accounts, often overseas, making recovery extremely difficult. Davenport warned that scammers are becoming more sophisticated in their use of technology, particularly AI tools that allow them to create realistic but entirely fake promotional content. These materials are designed to mimic legitimate financial advertisements and build trust with potential victims. Recent figures from An Garda Síochána show investment fraud rose by 20% last year, with losses exceeding €20 million. The scale of individual scams varies widely, ranging from smaller crypto-related frauds involving a few hundred euro to large-scale investment schemes where victims lose tens of thousands. FraudSMART is urging the public to remain cautious when encountering online investment advertisements, especially those promising guaranteed returns or requiring urgent action. It also advises consumers to avoid sharing personal information with unverified sources and to be wary of pressure tactics designed to rush financial decisions. Authorities continue to warn that fraudsters are adapting quickly, using advanced digital tools to target victims across multiple platforms.

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