President Donald Trump is using the latest government shutdown showdown to flex political muscle, and it could put the brakes on Wall Street's hottest IPO run in years.

What’s Happening?

The federal government remains shut down. Republicans and Democrats are at odds over enhanced Affordable Care Act subsidies, delaying a funding agreement.

On Thursday, Trump called the shutdown "an unprecedented opportunity" to fire workers and make "irreversible" cuts to what he dubbed "Democrat Agencies." He also met with budget director Russ Vought to discuss "temporary or permanent" spending cuts, echoing themes from the conservative policy blueprint known as “Project 2025,” which Vought advised.

Trump denied knowledge of the project ahead of the 2024 presidential election.

See Also: Shutdown Hits Growth And Hurts American Workers, Bessent Says

Why This Matters For IPOs

The drama in Washington comes just as the IPO market was heating up. U.S. IPOs posted their best quarter in years, generating $36.4 billion in exit value, a 2,861% jump from the prior year, according to PitchBook. Globally, IPOs have pulled in $88.1 billion so far this year.

Among the standouts were ...