President Donald Trump attributes impending federal workforce reductions to Democratic opposition amid ongoing government shutdown.
Published On 5 Oct 2025
The White House has issued a caution that widespread federal employee layoffs may commence if President Donald Trump determines that talks with Democratic lawmakers to resolve the partial government shutdown have stalled irreversibly.
As the shutdown extended into its fifth consecutive day on Sunday, Kevin Hassett, director of the White House National Economic Council, expressed optimism on CNN’s State of the Union that Democrats might still concede, potentially averting a significant political and economic fallout.
“President Trump and Budget Director Russ Vought are preparing contingency plans but hope they won’t need to implement them,” Hassett explained. “Should the president conclude that negotiations have completely broken down, layoffs will begin.”
Addressing reporters, Trump labeled the prospective job cuts as “Democrat layoffs,” asserting, “If anyone loses their job, it’s because of the Democrats.”
Negotiations at a Standstill
Since the impasse began on October 1-the start of the federal fiscal year-no substantial discussions have taken place following Senate Democrats’ rejection of a short-term funding proposal intended to keep government operations funded through November 21.
Senate Democratic leader Chuck Schumer told CBS’s Face the Nation that Democrats have declined to engage in talks, emphasizing that only direct negotiations between Trump and congressional leaders can resolve the deadlock.
Democrats are insisting on a permanent extension of the enhanced premium tax credits under the Affordable Care Act (ACA) and guarantees that the administration will not unilaterally reduce agreed-upon spending levels.
Senate Majority Leader John Thune expressed willingness to consider Democratic demands but urged them to first support reopening the government. “The choice before them is clear: reopen the government or face the consequences,” Thune told Fox News.
Trump also indicated Republican openness to healthcare reform, stating, “We want to fix the system. Obamacare has failed the people, and we aim to make it work effectively.”
No Resolution in Sight
Informal discussions among rank-and-file senators from both parties on healthcare and budget issues have yielded little progress. Democratic Senator Ruben Gallego told CNN, “At this moment, we are not closer to an agreement.”
The Senate plans to vote on Monday on two competing funding bills-one supported by the Republican-led House and another proposed by Democrats-though neither is anticipated to secure the 60 votes necessary to advance.
The Congressional Budget Office estimates that nearly 750,000 federal employees could face furloughs if the shutdown persists, with daily lost wages totaling approximately $400 million. While the 2019 Government Employee Fair Treatment Act guarantees back pay, affected workers will only receive compensation once the shutdown concludes.
