White House threatens mass layoffs amid deepening US government shutdown

The White House has warned that mass layoffs of federal workers could begin if United States 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.”

Trump attended a US Navy anniversary ceremony in Norfolk, Virginia, on Sunday despite the ongoing government shutdown.

“I believe, ‘THE SHOW MUST GO ON!’” Trump wrote on Truth Social before departing the White House for Naval Station Norfolk, calling it “a show of Naval aptitude and strength”.

But the celebration risked becoming entangled in partisan tensions, as Trump accused Democrats of fuelling the shutdown and trying “to destroy this wonderful celebration of the US Navy’s Birthday.”

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.