The White House has warned that mass layoffs of federal workers could begin if US President Donald Trump concludes that negotiations with congressional Democrats to end a partial government shutdown have reached a dead end.
As the shutdown entered its fifth day on Sunday, White House National Economic Council Director Kevin Hassett told CNN’s programme State of the Union that he believed there was still a chance Democrats would yield and avoid what could become a costly political and economic crisis.
“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, referring to the White House budget director. “If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs.”
Trump, speaking to reporters on Sunday, described the potential job cuts as “Democrat layoffs”, saying, “Anybody laid off, that’s because of the Democrats.”
Talks remain frozen
There have been no meaningful negotiations since Trump last met congressional leaders, with the impasse beginning on October 1 — the start of the federal fiscal year — after Senate Democrats rejected a short-term funding bill to keep government agencies open through November 21.
“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer told the CBS programme Face the Nation, insisting that only renewed talks between Trump and congressional leaders could end the standoff.
Democrats are demanding a permanent extension of enhanced premium tax credits under the Affordable Care Act (ACA) and assurances that the White House will not unilaterally cut spending agreed to in any deal.
Senate Majority Leader John Thune said he was open to addressing the Democrats’ concerns, but urged them to first back reopening the government. “It’s open up the government or else,” Thune told Fox News. “That’s really the choice that’s in front of them right now.”
Trump said Republicans were also willing to discuss healthcare reform. “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,” Trump said.
No deal in sight
Rank-and-file senators from both parties have held informal talks on healthcare and spending to break the deadlock, but progress has been minimal. “At this point, no,” Democratic Senator Ruben Gallego told CNN when asked if lawmakers were closer to a deal.
The Senate is set to vote again on Monday on competing funding bills — one backed by the Republican-controlled House and one proposed by Democrats — though neither is expected to win the 60 votes required to advance.
According to the Congressional Budget Office, nearly 750,000 federal employees face being furloughed as long as the shutdown continues, with total lost compensation estimated at $400m per day. While federal workers are guaranteed back pay under the 2019 Government Employee Fair Treatment Act, payments will only resume once the shutdown ends.
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