Trump’s Economic Adviser Warns of Layoffs Amid Ongoing Shut Down Standoff

WASHINGTON, D.C. — The federal government shutdown has now entered its fifth day without signs of resolution. As negotiations stall, President Donald Trump’s top economic adviser warned of massive layoffs if discussions do not lead to a deal.

Trump expressed confidence during a text conversation that Republicans are “winning” in the ongoing political battle over federal spending. This contrasts sharply with the growing concerns voiced by Democratic leaders regarding the repercussions of continued shutdown, particularly on healthcare costs for millions of Americans.

Unions representing federal employees, the American Federation of Government Employees (AFGE) and the American Federation of State, County and Municipal Employees (AFSCME), have petitioned a federal court in California to prevent potential layoffs that could be linked to the shutdown. AFGE National President Everett Kelley criticized the administration’s threats to terminate employees as both illegal and harmful to essential government services.

As lawmakers remain divided, Senate Majority Leader John Thune noted that a stalemate persists, while Senate Minority Leader Chuck Schumer called for negotiations that have yet to yield any fruitful results. “The only way this will ultimately be solved is if leaders sit together,” Schumer stated during an interview. Meanwhile, House Speaker Mike Johnson blamed the shutdown on Democratic opposition to his party’s proposals.

On the public front, data shows that voters are increasingly attributing the blame for the shutdown to Trump and congressional Republicans, with a recent poll revealing that 39% of Americans hold them responsible. The economic ramifications of the shutdown are also becoming apparent, as businesses express concern over the impact on consumer confidence.

Across the country, workers are left uncertain about their paychecks, with Trump’s administration preparing for potential mass layoffs. Economic Council Director Kevin Hassett stated the need for the Democrats to act decisively to prevent such outcomes.

As the shutdown continues and both sides trade barbs, the pressure mounts on congressional leaders to find a viable compromise. “It’s time to negotiate and end this shutdown,” said Kelley, echoing the sentiments of countless furloughed workers waiting for resolution.