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THE White House has warned that mass layoffs of federal workers will commence if negotiations with congressional Democrats over the ongoing US government shutdown reach a dead end.
As the partial shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN’s State of the Union that President Donald Trump and acting budget director Russell Vought were prepared to begin job cuts if necessary.
“President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don't,” Reuters cited Hassett saying.
Later on Sunday, Trump confirmed to reporters that layoffs had already begun, though he declined to provide details, stating only, “It’s taking place right now.”
The standoff began on 1 October, the first day of the 2026 fiscal year, after Senate Democrats rejected a short-term funding bill that would have kept federal agencies open until 21 November.
Democrats have insisted on a permanent extension of premium tax credits under the Affordable Care Act (ACA) and guarantees that the White House will not attempt to roll back spending commitments reached in any funding deal.
“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer said on CBS’ *Face the Nation*. “The impasse can only be resolved through further talks between the president and the congressional leadership.”
Despite pressure from Democrats, Senate Majority Leader John Thune maintained that government operations must first resume before broader issues, such as healthcare, can be addressed. “It’s open up the government or else,” Thune said on Fox News’ *Sunday Morning Futures*.
Trump echoed a willingness to engage on healthcare reform but reiterated his long-held view that the ACA — or Obamacare — needs fixing. “We want to fix it so it works. Obamacare has been a disaster for the people,” he said.
Meanwhile, tensions flared over the weekend as protesters clashed with law enforcement outside a federal building in Portland, underlining growing public frustration over the shutdown.
The Senate is expected to vote again on Monday on a funding bill already passed by the Republican-led House, as well as a Democratic-backed alternative. Neither measure is expected to reach the 60-vote threshold required for passage. With a 53–47 majority in the Senate and one Republican opposing the House proposal, GOP leaders would need at least eight Democrats to cross the aisle — so far, only three have done so.
Democratic Senator Ruben Gallego told CNN the parties remain “nowhere near” a deal, despite informal cross-party discussions on healthcare and other sticking points.
The Office of Management and Budget, a key player in Trump’s efforts to downsize the federal government, has yet to comment on the timeline or scope of the potential layoffs. - October 6, 2025