The White House warned Sunday that layoffs of federal workers could begin if President Donald Trump determines that negotiations to end the partial government shutdown are going nowhere, sharpening pressure on congressional Democrats as Washington enters another week without a funding deal.
Kevin Hassett, director of the National Economic Council, said on CNN that job cuts would start if talks are “absolutely going nowhere,” while adding he still hopes a breakthrough can avert that outcome.
The shutdown began on October 1, the start of the 2026 fiscal year, and by Sunday it had stretched into its fifth day with little sign of progress.
Agencies deemed nonessential remain shuttered, many federal workers are furloughed or working without pay, and uncertainty is rippling through travel, research and procurement schedules.
Democrats have pushed for a permanent extension of enhanced Affordable Care Act premium tax credits and written safeguards to prevent the White House from canceling agreed spending after a deal.
Trump and Republican leaders have signaled they want broader changes to the health law and more discretion over how money is deployed, positions that have found little traction across the aisle.
Hassett framed the layoffs as contingent on the President’s judgment about the direction of talks, saying the administration is preparing for that possibility even as it seeks a compromise.
The message raises the stakes for the week ahead on Capitol Hill, where procedural votes floated over the weekend were widely expected to fail without bipartisan support.
Beyond the fiscal math, prolonged gridlock can subtly expand White House control over spending by shifting decisions into emergency workarounds, a dynamic that worries appropriators in both parties.
Labor groups, meanwhile, are seeking court relief to block any mass layoffs tied to the impasse, setting up a potential legal fight over executive authority and federal workforce protections.
House and Senate leaders traded blame through the weekend, and earlier talks collapse set the tone for the current stalemate.
Trump has argued that Democrats would be responsible for job losses if they refuse his terms, even as both sides signal openness to informal conversations that might reopen a path to a stopgap.
