White House warns of mass layoffs as government shutdown talks stall

The Trump administration is preparing to begin mass layoffs of federal workers if negotiations with congressional Democrats to end the ongoing partial government shutdown fail to make progress, a senior White House official said Sunday.

As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN’s State of the Union that President Donald Trump was still hopeful Democrats would compromise to avoid widespread job losses and further economic disruption.

“President Trump and [Budget Director] Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don’t,” Hassett said.

Later in the day, when asked by reporters when layoffs might begin, Trump replied briefly: “It’s taking place right now.”

The Office of Management and Budget (OMB), which has led efforts to shrink the size of the federal government, did not immediately respond to requests for comment.

No progress in negotiations

So far, there have been no visible signs of new talks between the White House and congressional leaders since their last meeting a week ago. The shutdown began October 1, marking the start of the 2026 fiscal year, after Senate Democrats rejected a short-term spending bill that would have funded federal agencies through November 21.

“They’ve refused to talk with us,” said Senate Democratic Leader Chuck Schumer on CBS’ Face the Nation, adding that the standoff could only be resolved through direct talks between Trump and congressional leadership.

Democrats have demanded a permanent extension of enhanced premium tax credits under the Affordable Care Act (ACA) and guarantees that the administration will not attempt to roll back approved spending once a deal is reached.

Senate Majority Leader John Thune said Republicans are open to addressing Democratic concerns but insisted that Democrats must first agree to reopen the government.

“We want to fix it so it works,” Trump said of the ACA. “Obamacare has been a disaster for the people, so we want to have it fixed so it works.”

Senate vote scheduled

Meanwhile, lawmakers from both parties have held informal discussions in search of a compromise that could reopen the government and tackle healthcare disagreements.

Asked whether progress had been made, Democratic Senator Ruben Gallego told CNN, “At this point, no.”

The Senate is scheduled to vote Monday on two competing stopgap funding measures — one passed by the Republican-controlled House and a Democratic alternative. Neither is expected to receive the 60 votes required for passage.

With a 53–47 Republican majority and at least one GOP senator opposed to the House measure, Republican leaders need eight Democratic votes to move forward but have so far secured only three.

“It’s open up the government or else,” Thune said on Fox News’ Sunday Morning Futures. “That’s really the choice that’s in front of them right now.”