White House warns of mass layoffs if shutdown talks stall

The Trump administration will begin dismissing federal workers if President Donald Trump deems ongoing negotiations with congressional Democrats over ending the partial shutdown to be going nowhere.

As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN's "State of the Union" programme that he still saw a chance that Democrats would back down, averting a costly shutdown and federal employee layoffs that have been threatened by White House budget director Russell Vought.

"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.

"If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs. But I think that everybody is still hopeful that when we get a fresh start at the beginning of the week, that we can get the Democrats to see that it's just common sense to avoid layoffs like that."

Trump described the potential job cuts on Sunday as "Democrat layoffs," telling reporters: “Anybody laid off that’s because of the Democrats.”

No sign of talks

There have been no tangible signs of negotiations between congressional leaders since Trump met with them last week. The shutdown began on Oct. 1, the start of federal fiscal year 2026, after Senate Democrats rejected a short-term funding measure that would keep federal agencies open through Nov. 21.

"They've refused to talk with us," Senate Democratic leader Chuck Schumer told CBS' "Face the Nation" programme, saying the impasse could be solved only by further talks between Trump and the four congressional leaders.

Democrats are demanding a permanent extension of enhanced premium tax credits to help Americans purchase private health insurance through the Affordable Care Act and assurances that the White House will not try to unilaterally cancel spending agreed to in any deal.

Senate Majority Leader John Thune has said he is willing to address the concerns of Democrats but that they must first agree to reopen the federal government.

Trump also expressed an interest in the healthcare question while emphasising Republican interests in reforming the ACA, also known as Obamacare.

"We want to fix it so it works. Obamacare has been a disaster for the people, so we want to have it fixed so it works," the president said.

Senate vote Monday

Rank-and-file Senate Democrats and Republicans have held informal talks aimed at finding common ground on healthcare and other issues in hopes of reaching a deal to reopen the government.

Asked if the lawmakers are any closer to a deal, Democratic Senator Ruben Gallego told CNN: "At this point, no."

On Monday, the Senate is due to vote for a fifth time on the stopgap funding bill that has already passed the Republican-controlled House of Representatives and on a Democratic alternative. Neither measure is expected to receive the 60 votes needed to advance.

With a 53-47-seat majority and one Republican opposed to the House funding bill, Republican leaders need at least eight Democrats to support the measure but have seen only three cross the aisle so far.

"It's open up the government or else," John Thune told the Fox News programme "Sunday Morning Futures."

"That's really the choice that's in front of them right now," the South Dakota Republican said.