The White House has issued a warning that large-scale dismissals of federal employees could begin if President Donald Trump determines that negotiations with congressional Democrats over the ongoing partial government shutdown are not progressing. As the closure extended into its fifth day over the weekend, Kevin Hassett, Director of the White House National Economic Council, stated on CNN’s State of the Union that while discussions remain at an impasse, there is still potential for Democrats to shift their stance and prevent a broader political and economic disruption.
Hassett noted that Trump and budget director Russ Vought are preparing contingency measures, though they continue to hope such actions won’t be necessary. “If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs,” Hassett said. Trump himself labeled any potential job losses as “Democrat layoffs,” placing responsibility on the opposition party, saying, “Anybody laid off, that’s because of the Democrats.”
Negotiations have remained stagnant since the fiscal year began on October 1, after Senate Democrats rejected a temporary funding bill that would have kept agencies operating through November 21. Senate Democratic leader Chuck Schumer emphasized on CBS’s Face the Nation that no progress can occur without direct engagement between Trump and congressional leadership.
Democrats are insisting on a permanent extension of enhanced premium tax credits under the Affordable Care Act and safeguards against unilateral spending reductions by the administration. Senate Majority Leader John Thune expressed willingness to discuss healthcare concerns but stressed that reopening the government must come first. “It’s open up the government or else,” Thune said in a Fox News interview.
Trump indicated Republicans are open to healthcare reform discussions, calling the current system under Obamacare “a disaster” and advocating for changes to improve functionality. Informal talks among rank-and-file senators from both parties have occurred, but tangible progress remains limited. Democratic Senator Ruben Gallego told CNN there is no indication a breakthrough is near.
The Senate is scheduled to vote Monday on two competing funding proposals—one supported by the Republican-led House and another put forward by Democrats—though neither is expected to secure the 60 votes needed for passage. According to the Congressional Budget Office, approximately 750,000 federal workers could be furloughed for the duration of the shutdown, with daily compensation losses estimated at $400 million. While the 2019 Government Employee Fair Treatment Act guarantees back pay once operations resume, affected employees will not receive wages until the shutdown concludes.
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White House threatens mass layoffs amid deepening US government shutdown
The White House has warned that mass layoffs of federal workers could begin if US President Donald Trump concludes that negotiations with congressional Democrats to end a partial government shutdown have reached a dead end. n nAs the shutdown entered its fifth day on Sunday, White House National Economic Council Director Kevin Hassett told CNN’s programme State of the Union that he believed there was still a chance Democrats would yield and avoid what could become a costly political and economic crisis. n nRecommended Stories n nlist of 3 items n nlist 1 of 3Why did the US government shut down? n nlist 2 of 3How is the government shutdown being felt across the US? n nlist 3 of 3‘Will they change course?’: US Senate in deadlock over government shutdown n nend of list n n“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, referring to the White House budget director. “If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs.” n nTrump, speaking to reporters on Sunday, described the potential job cuts as “Democrat layoffs”, saying, “Anybody laid off, that’s because of the Democrats.” n nTalks remain frozen n nThere have been no meaningful negotiations since Trump last met congressional leaders, with the impasse beginning on October 1 — the start of the federal fiscal year — after Senate Democrats rejected a short-term funding bill to keep government agencies open through November 21. n n“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer told the CBS programme Face the Nation, insisting that only renewed talks between Trump and congressional leaders could end the standoff. n nDemocrats are demanding a permanent extension of enhanced premium tax credits under the Affordable Care Act (ACA) and assurances that the White House will not unilaterally cut spending agreed to in any deal. n nSenate Majority Leader John Thune said he was open to addressing the Democrats’ concerns, but urged them to first back reopening the government. “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.” n nTrump said Republicans were also willing to discuss healthcare reform. “We want to fix it so it works. Obamacare has been a disaster for the people, so we want to have it fixed so it works,” Trump said. n nNo deal in sight n nRank-and-file senators from both parties have held informal talks on healthcare and spending to break the deadlock, but progress has been minimal. “At this point, no,” Democratic Senator Ruben Gallego told CNN when asked if lawmakers were closer to a deal. n nThe Senate is set to vote again on Monday on competing funding bills — one backed by the Republican-controlled House and one proposed by Democrats — though neither is expected to win the 60 votes required to advance. n nAccording to the Congressional Budget Office, nearly 750,000 federal employees face being furloughed as long as the shutdown continues, with total lost compensation estimated at $400m per day. While federal workers are guaranteed back pay under the 2019 Government Employee Fair Treatment Act, payments will only resume once the shutdown ends.