Tuesday, 02 January 2024 12:17 GMT

US Government Shutdown Day 2: Aid To 6.7 Million Americans Threatened Several Energy Projects Terminated


(MENAFN- Live Mint) US government shutdown, Day 2: The federal government shutdown, imposed by US President Donald Trump, entered its second day on Thursday, 2 October 2025, after the Trump administration and the Democrats failed to strike a deal to extend funding.

Along with risking the furlough or possible permanent layoff of thousands of federal workers, the first US government shutdown in nearly seven years is also set to jeopardise the crucial food assistance for about 6.7 million low-income American citizens and terminate several clean energy projects in the nation.

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The recent US government shutdown is threatening the food aid program for nearly 6.7 million low-income Americans, as there are no signs of a swift resolution between the Republican-led government and the Democrats in the Senate, reported the news agency Reuters.

According to the agency report, the threat to the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) illustrates the effects of a shutdown which entered its second day on Thursday.

The food-aid program, although a small portion of the nearly $7 trillion federal budget, has a funding of $7.6 billion for the nutrition program.

Unlike the Social Security retiree benefit and Medicare and Medicaid healthcare programs, the WIC food aid programme has to be reauthorised by Congress every year, according to the news report.

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Georgia Machell, president and CEO of the National WIC Association, reportedly said that the programme is critically low on funds given this shutdown timing at the end of the fiscal year. The agency report mentioned that the US Department of Agriculture said that it will continue to administer WIC as funds allow.

“A prolonged federal shutdown that lasts longer than one week is going to start to put babies and young children at risk,” Machell told the news agency.

Governors outside Washington who are responsible for disbursing the federal WIC funds have tried to reassure their constituents that they will do what they can to maintain services, including food, nutrition counselling and other support to low-income Americans.

Energy projects cuts

Donald Trump -led federal government has announced its plans to terminate several clean energy projects and freeze billions of dollars for major projects in New York amid the US government shutdown, reported the news agency AFP.

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According to the agency report, the federal government's move is part of Trump 's efforts to pressure Senate Democrats into agreeing on a deal to end the shutdown.

The Department of Energy announced that it will be cutting 321 financial awards, which are supporting 223 energy projects, which are set to save nearly $7.56 billion for American taxpayers, according to the agency report.

“The termination of 321 financial awards supporting 223 projects, resulting in a savings of approximately $7.56 billion for American taxpayers,” the Department of Energy announced on Thursday.

The agency report also highlighted that the recipients of federal funding have 30 days to appeal against a termination decision, and some have already begun the process.

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