White House Warns of Mass Layoffs Amid Stalled Shutdown Talks

Sun Oct 05 2025
Mark Cooper (3280 articles)
White House Warns of Mass Layoffs Amid Stalled Shutdown Talks

A senior White House official stated on Sunday that the Trump administration will initiate mass layoffs of federal workers if President Donald Trump concludes that negotiations with congressional Democrats to resolve a partial government shutdown are “absolutely going nowhere.” As the shutdown entered its fifth day, Kevin Hassett stated “State of the Union” program that he still perceived a possibility that Democrats might relent, potentially avoiding a costly shutdown and the federal employee layoffs that have been warned about by White House budget director Russell Vought. “President Trump and Russ Vought are preparing to take action if necessary, but they are hopeful that it won’t come to that,” Hassett said. “If the president determines that the negotiations are completely stalled, then layoffs will begin.”

However, I believe that there remains a sense of optimism that as we approach the start of the week, we can persuade the Democrats to recognize that it is simply logical to prevent layoffs of that nature. Trump characterized the possible job reductions on Sunday as “Democrat layoffs,” stating to reporters: “Anybody laid off that’s because of the Democrats.” No concrete indications of negotiations have emerged among congressional leaders since Trump’s meeting with them last week. The shutdown commenced on October 1, marking the beginning of the federal fiscal year 2026, following the rejection by Senate Democrats of a short-term funding measure intended to maintain the operation of federal agencies until November 21. “They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer told “Face the Nation” program, stating that the impasse could be resolved only through additional discussions between Trump and the four congressional leaders.

Democrats are calling for a lasting extension of enhanced premium tax credits to assist Americans in acquiring private health insurance via the Affordable Care Act, alongside guarantees that the White House will not attempt to unilaterally revoke spending agreed upon in any arrangement. John Thune has expressed his readiness to engage with the concerns of Democrats, provided they first consent to the reopening of the federal government. Trump also conveyed a keen interest in the healthcare issue, highlighting Republican priorities in reforming the ACA, commonly referred to as Obamacare. “We want to ensure it functions properly. Obamacare has been a disaster for the people, so we want to have it fixed so it works,” the president stated. Members of the lower ranks Senate Democrats and Republicans have engaged in informal discussions to identify shared interests regarding healthcare and other matters, with the goal of reaching an agreement to reopen the government. When inquired about the lawmakers’ progress towards a deal, Democratic Senator Ruben Gallego stated “At this point, no.”

On Monday, the Senate is set to cast its vote for a fifth time on the stopgap funding bill that has already been approved by the Republican-controlled House of Representatives, as well as on a Democratic alternative. Neither measure is anticipated to garner the 60 votes required for progression. Holding a 53-47-seat majority and facing one Republican dissenting from the House funding bill, Republican leaders require the backing of at least eight Democrats. However, only three have thus far chosen to cross party lines. “It’s open up the government or else,” John Thune stated “Sunday Morning Futures. That’s really the choice that’s in front of them right now,” the South Dakota Republican stated.

Mark Cooper

Mark Cooper

Mark Cooper is Political / Stock Market Correspondent. He has been covering Global Stock Markets for more than 6 years.