WASHINGTON: The White House has warned it is prepared to trigger mass layoffs of federal employees if President Donald Trump decides that negotiations with congressional Democrats to end the partial government shutdown have reached a complete deadlock, a senior administration official has said.
As the shutdown entered its sixth day, White House National Economic Council Director Kevin Hassett told CNN that there was still hope Democrats might reconsider their position, potentially avoiding the financial toll of a prolonged shutdown and the layoffs previously warned of by White House budget director Russell Vought.
“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.
When asked by reporters on Sunday about the timing of federal worker layoffs, President Trump replied, “It’s taking place right now,” without offering further details.
The government shutdown began on October 1, marking the start of the 2026 federal fiscal year, after Senate Democrats blocked a short-term funding bill that would have kept federal agencies running through November 21.
“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer told CBS’s Face the Nation programme, saying the impasse could be solved only by further talks between Trump and the four congressional leaders.
Democrats are pushing for a permanent extension of the enhanced premium tax credits that help Americans purchase private health insurance through the Affordable Care Act (ACA). They are also seeking assurances that the White House will not attempt to unilaterally cut spending included in any negotiated agreement.
Senate Majority Leader John Thune has indicated a willingness to consider the Democrats’ demands, but insists that they must first agree to reopen the federal government.
President Trump, meanwhile, acknowledged the importance of healthcare in the ongoing discussions, reiterating Republican goals to reform the ACA, commonly known as Obamacare.
“We want to fix it so it works. Obamacare has been a disaster for the people, so we want to have it fixed so it works,” Trump said.
The Republican-controlled House of Representatives and a Democratic alternative. Neither measure is expected to receive the 60 votes needed to advance.
With a 53-47-seat majority and one Republican opposed to the House funding bill, Republican leaders need at least eight Democrats to support the measure, but have seen only three cross the aisle so far.
