White House Warns of Layoffs Amid Shutdown Impasse
The White House has warned that massive federal layoffs may begin if ongoing shutdown negotiations with Congress fail to make progress. Officials say they are preparing for cuts, while still hoping a deal can be reached to avoid job losses.
Layoff Threat If Talks Stall
Kevin Hassett, director of the National Economic Council, said President Trump and top budget officials are preparing contingency plans for layoffs. He noted that if the talks are “absolutely going nowhere,” job cuts could follow quickly.
Current Shutdown and Context
The U.S. government entered a partial shutdown on October 1, 2025, after lawmakers failed to agree on a funding bill. The dispute centers on spending priorities, foreign aid, and health care policy. So far, more than 800,000 federal employees have been furloughed or placed in limbo.
Reactions and Legal Pushback
Labor unions have responded strongly, filing lawsuits against the administration. They argue that threatening mass firings during a shutdown is unlawful and violates federal employment protections. Union leaders also accuse the White House of using layoffs as political pressure on Congress.
Possible Impact and Uncertainty
Officials have not specified which agencies or how many jobs could be affected. Critics warn the threat alone is destabilizing for employees already without paychecks. Meanwhile, both Republicans and Democrats continue to trade blame for the stalemate, with no breakthrough in sight.
As talks drag on, the fate of federal workers now rests on whether a deal can be struck before the layoff threat becomes reality.
