White House Warns of Federal Layoffs as Government Shutdown Drags Into Fifth Day

The White House has signalled that large-scale layoffs of federal workers could begin soon if President Donald Trump decides that negotiations with congressional Democrats over the partial government shutdown have hit a dead end.

As the shutdown entered its fifth day on Sunday, White House National Economic Council Director Kevin Hassett told CNN that there was still “a chance Democrats will yield” before the situation turns into a deeper political and economic crisis.

“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.”

Trump told reporters later that any job cuts would be “Democrat layoffs.”

“Anybody laid off, that’s because of the Democrats,” he said.

Despite the impasse, Trump attended a US Navy anniversary event in Norfolk, Virginia, writing on Truth Social before his trip:

“I believe, ‘THE SHOW MUST GO ON!’” He described the celebration as “a show of Naval aptitude and strength,” while accusing Democrats of trying “to destroy this wonderful celebration of the US Navy’s Birthday.”

Talks Remain Frozen

Negotiations between the White House and congressional leaders have been stalled since October 1, when the Senate failed to pass a temporary spending bill to keep government agencies open through November 21.

“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer told CBS, adding that only direct talks with the president could break the stalemate.

Democrats are demanding a permanent extension of premium tax credits under the Affordable Care Act and guarantees against unilateral White House spending cuts.

Republican Senate Majority Leader John Thune said he was open to addressing those concerns, but urged Democrats to first agree to reopen the government.

“It’s open up the government or else,” he told Fox News.

Trump said he was also willing to talk about health care reform.

“We want to fix it so it works. Obamacare has been a disaster for the people,” he said.

No Deal in Sight

Behind closed doors, senators from both parties have held informal talks, but progress remains minimal.

The Senate is expected to vote again Monday on competing spending bills, one backed by Republicans and another proposed by Democrats, though neither is likely to clear the 60-vote threshold.

According to the Congressional Budget Office, around 750,000 federal workers face furloughs as the shutdown continues, costing an estimated $400 million per day in lost pay. Federal employees will eventually receive backpay, but only once the government reopens.