The White House on Sunday (October 5, 2025) warned that mass layoffs of federal workers could begin if President Donald Trump concludes that talks with congressional Democrats to end the ongoing partial government shutdown have hit a dead end.
As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN’s State of the Union that there was still a chance Democrats might compromise before the crisis deepens.
“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.”
How did Trump describe the “layoffs” threat?
Speaking to reporters, Trump described the potential job cuts as “Democrat layoffs,” arguing that the opposition party was responsible for the stalemate. “Anybody laid off, that’s because of the Democrats,” he said.
Despite the shutdown, Trump attended a US Navy anniversary ceremony in Norfolk, Virginia, calling it “a show of Naval aptitude and strength.”
In a post on Truth Social before departing the White House, he wrote, “I believe, ‘THE SHOW MUST GO ON!’” But the celebration risked being overshadowed by political tension, as Trump accused Democrats of trying “to destroy this wonderful celebration of the US Navy’s Birthday.”
How did the present US shutdown happen?
The deadlock began on October 1, the start of the federal fiscal year, after Senate Democrats rejected a short-term funding bill to keep agencies open through November 21. Since then, there have been no meaningful negotiations.
“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer told CBS’s Face the Nation, insisting that only direct talks between Trump and congressional leaders could resolve the impasse.
Democrats are demanding a permanent extension of enhanced Affordable Care Act (ACA) premium tax credits and assurances that the White House will not cut previously agreed spending.
What was the Republican take on the shutdown?
Republican Senate Majority Leader John Thune urged Democrats to first reopen the government. “It’s open up the government or else,” Thune said on Fox News. Trump, meanwhile, reiterated that Republicans were open to healthcare reform discussions, saying, “We want to fix it so it works. Obamacare has been a disaster for the people.”
Informal bipartisan talks on spending and healthcare continue, but with little progress. The Senate is scheduled to vote again Monday (October 6, 2025) on competing funding bills from both parties—though neither is expected to reach the 60 votes needed to advance.
According to the Congressional Budget Office, around 750,000 federal employees face furloughs as the shutdown drags on, with daily lost compensation estimated at $400 million. While federal workers are guaranteed back pay under the 2019 Government Employee Fair Treatment Act, payments will only resume once the shutdown ends.