Mass layoffs to begin if shutdown talks stall, says White House
WASHINGTON: The Trump administration will begin mass layoffs of federal employees if President Donald Trump determines that negotiations with congressional Democrats to end the partial government shutdown are "absolutely going nowhere", a senior White House official said on Sunday (Oct 5).
As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN that the administration still hoped for a deal to avert layoffs threatened by budget director Russell Vought.
"President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don’t," Hassett said. "If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs."
Trump described the potential job cuts as "Democrat layoffs", telling reporters: "Anybody laid off, that’s because of the Democrats."
NO SIGN OF TALKS
There have been no visible signs of progress since Trump met congressional leaders last week. The shutdown began on Oct 1, the first day of the 2026 fiscal year, after Senate Democrats rejected a short-term funding bill that would have kept agencies open through Nov 21.
"They’ve refused to talk with us," Senate Democratic leader Chuck Schumer said on CBS’ Face the Nation, calling for renewed negotiations between Trump and congressional leaders.
Democrats are demanding a permanent extension of tax credits under the Affordable Care Act and assurances that the White House will not cancel spending agreed to in any eventual deal.
Senate Majority Leader John Thune said he was open to addressing Democrats’ concerns but that they must first agree to reopen the government.
SENATE VOTE ON MONDAY
Rank-and-file lawmakers have held informal talks aimed at finding common ground on healthcare and other issues, but few expect progress before Monday’s Senate votes.
The chamber is scheduled to vote for the fifth time on two competing short-term funding bills, one backed by House Republicans and another drafted by Democrats, though neither is expected to win the 60 votes required to advance.
With one Republican opposed, Senate leaders would need at least eight Democrats to cross party lines to pass the House version. So far, only three have done so.
"It’s open up the government or else," Thune told Fox News. "That’s really the choice that’s in front of them right now."
