Mass layoffs will start if shutdown talks 'going nowhere': White House
The White House has issued a stern warning: if funding negotiations collapse, mass layoffs of federal employees could be imminent. Since October 1, the U.S. government has entered a partial shutdown after the Senate rejected a short-term spending bill meant to sustain operations until November 21. In recent remarks, National Economic Council Director Kevin Hassett indicated that the Trump administration is prepared to take drastic steps if congressional talks “go absolutely nowhere.” Budget Director Russell Vought has also signaled readiness to act. While President Trump hinted that layoffs might already be underway, he offered no clarifying details. Congressional leaders remain stalled, with Democrats pushing for extensions to tax credits under the Affordable Care Act and safeguards against unilateral federal spending cuts. Meanwhile, the Senate is set to vote again on competing funding proposals, though they lack support to advance, heightening the risk of prolonged shutdown and workforce reductions.
The Key points
- The U.S. entered a partial government shutdown on October 1 as funding lapsed.
- Senate Democrats rejected a stopgap measure intended to avert closures.
- White House officials warn mass federal layoffs could follow if talks stall.
- Kevin Hassett says the administration is “lining things up” for action.
- Budget Director Vought has also indicated readiness for employee cuts.
- President Trump suggested layoffs might already be in progress without elaboration.
- Congressional negotiations remain stalled, with no new breakthroughs.
- Democrats demand permanent tax credit extensions tied to healthcare reform.
- Republicans insist the government must reopen before further negotiations.
- The Senate will vote again soon on funding bills unlikely to pass.
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