The White House is warning of potential federal layoffs as the government shutdown enters another week, with senior officials pointing to stalled negotiations between President Trump and congressional Democrats as the key sticking point.
Kevin Hassett, director of the White House National Economic Council (NEC), said Sunday on CNN’s State of the Union that layoffs could follow if talks show no progress. “I think that if the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs,” Hassett said, while also noting optimism that Democrats might compromise once lawmakers return to Washington this week.
Hassett emphasized the economic stakes of the prolonged shutdown, citing estimates from the Council of Economic Advisers that a continued closure could harm GDP by $15 billion per week and leave federal workers unable to pay rent and other bills. He framed a potential resolution as “common sense” if Democrats agree to concessions, suggesting layoffs could be avoided if progress is made soon.
The comments come days after President Trump met with Office of Management and Budget (OMB) Director Russell Vought to discuss possible cuts and workforce reductions across federal agencies. The meeting was described by Trump as an “unprecedented opportunity” to evaluate downsizing during the shutdown.
White House press secretary Karoline Leavitt reinforced the message on Thursday, telling reporters that layoffs under consideration would number “in the thousands.” She added that such discussions “would not be happening if the Democrats had voted to keep the government open.”
President Trump himself blamed Democrats directly when speaking to reporters on Sunday, characterizing the looming job losses as “Democrat layoffs.” He said, “We have a record-setting economy. We have a record-setting country. Prices are way down. We’re doing better than the country has ever done and the Democrats hate seeing that. It’s up to them. Anybody laid off, that’s because of the Democrats.”
The White House has not yet provided a detailed breakdown of which agencies or departments could face layoffs if negotiations remain stalled. Analysts note that while shutdowns typically result in furloughs, permanent cuts or firings during such a period would mark a significant departure from past practice.
