The Trump administration is prepared to initiate widespread layoffs of federal employees if negotiations with congressional Democrats to resolve the ongoing partial government shutdown reach a standstill, a senior official from the White House disclosed on Sunday.
In the midst of the shutdown’s fifth day, Kevin Hassett, the White House National Economic Council Director, shared optimism during an appearance on CNN’s “State of the Union” show, suggesting a potential retreat by Democrats could prevent a costly shutdown and potential job cuts for federal workers as warned by Russell Vought, the White House budget director.
Hassett mentioned, “President Trump and Russ Vought are making preparations and bracing for action if necessary, while hoping to avoid it.”
Later in the day, Trump hinted at the commencement of federal worker layoffs when questioned by reporters, stating vaguely that it was currently underway.
The Office of Management and Budget at the White House, a pivotal player in Trump’s efforts to significantly reduce the federal government’s size, did not promptly respond to requests for comment.
Since Trump’s meeting with congressional leaders last week, no concrete progress has been made in negotiations. The shutdown commenced on October 1, the start of the federal fiscal year 2026, following Senate Democrats’ rejection of a short-term funding proposal to keep federal agencies operational until November 21.
Senate Democratic leader Chuck Schumer indicated on CBS’ “Face the Nation” program that the deadlock could only be resolved through further discussions between Trump and the four congressional leaders, as Democrats are pushing for a permanent extension of enhanced premium tax credits under the Affordable Care Act and assurances that the White House won’t unilaterally revoke agreed-upon spending.
Senate Majority Leader John Thune expressed willingness to address Democratic concerns but emphasized the necessity for reopening the federal government first.
Trump emphasized the Republican stance on healthcare reforming the ACA, commonly known as Obamacare, expressing a desire to improve it for the benefit of the people.
Informal discussions between rank-and-file Senate Democrats and Republicans have been ongoing to find common ground on healthcare and other issues to potentially reach an agreement to reopen the government.
In response to the progress made, Democratic Senator Ruben Gallego mentioned to CNN that they are currently not any closer to a resolution.
A Senate vote is scheduled for Monday on the stopgap funding bill, previously approved by the Republican-controlled House of Representatives, along with a Democratic alternative. Neither bill is expected to secure the 60 votes required to advance.
With a majority of 53-47 seats, and one Republican opposing the House funding bill, Republican leaders seek a minimum of eight Democratic supporters for the measure, yet only three have crossed party lines so far.
John Thune asserted on the Fox News program “Sunday Morning Futures” that the options presented to Democrats are clear – either reopen the government or face consequences.