Trump Threatens Layoffs as Government Shutdown Grinds On

WASHINGTON, D.C. — The White House has issued a stark warning that mass layoffs of federal workers could commence if President Donald Trump concludes that ongoing negotiations with congressional Democrats to end the partial government shutdown have reached an impasse. As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett commented on CNN’s State of the Union that he still believes there’s a chance for a deal.

“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.”

During a press briefing, Trump labeled the potential job cuts as “Democrat layoffs,” attributing responsibility for federal job losses to the opposition party. He attended a U.S. Navy anniversary ceremony in Norfolk, Virginia, on Sunday, maintaining a spirited public image amidst the shutdown.

Despite Trump’s optimistic comments, no significant negotiations have occurred since the last meeting he had with congressional leaders, which was shortly before the shutdown began on October 1. The standoff arose after Senate Democrats rejected a short-term funding bill that aimed to keep government agencies operational through November 21.

Senate Democratic leader Chuck Schumer voiced his frustration on CBS’s Face the Nation, asserting that a resolution requires renewed discussions between Trump and congressional leaders. He emphasized the need for a permanent extension of enhanced premium tax credits under the Affordable Care Act and assurances against unilateral spending cuts.

Republican Senate Majority Leader John Thune expressed a willingness to address the Democrats’ concerns but insisted that reopening the government must be the priority. “It’s open up the government or else,” Thune stated during an interview on Fox News.

Trump mentioned that Republicans are ready to discuss healthcare reforms. However, talks among rank-and-file senators from both parties have not moved forward significantly, according to Democratic Senator Ruben Gallego.

The Senate is scheduled to vote on Monday on competing funding bills from both parties, but neither is expected to secure the necessary 60 votes to proceed. According to the Congressional Budget Office, nearly 750,000 federal employees are poised to be furloughed if the shutdown persists, leading to an estimated $400 million loss in daily compensation.

Payments for federal workers will only resume after the shutdown ends, although backpay is guaranteed under the 2019 Government Employee Fair Treatment Act. As the shutdown continues, both parties are feeling the pressure, with Trump leveraging the situation to push for cuts to federal programs backed by Democrats.

Democratic lawmakers have voiced their concerns, asserting that Trump is attacking essential federal services and acting against the interests of public workers. The situation remains fluid, with ongoing discussions expected as lawmakers continue to navigate the impasse.