White House hints at federal layoffs if Democrats don’t pass spending bill on Monday

White House hints at federal layoffs if Democrats don’t pass spending bill on Monday

The White House has hinted at potential mass layoffs of federal workers if negotiations with congressional Democrats fail to end the partial government shutdown. Speaking on CNN’s State of the Union, White House National Economic Council Director Kevin Hassett stated that the Trump administration is preparing for layoffs if talks with Democrats remain ineffective .

The partial shutdown began on October 1, when Senate Democrats, led by Sen. Chuck Schumer (D-NY), rejected a 45-day funding bill passed by the House. The standoff has led to federal workers not receiving pay, with the Trump administration blaming Democrats for the stalemate .

The White House has been holding informal talks with lawmakers from both parties to end the shutdown. However, there are no signs of a resolution, with Senate Majority Leader John Thune (R-SD) stating that he is open to addressing Democrats’ concerns only once the government reopens .

President Trump has seized the opportunity to target Democratic-led cities and states with cuts to federal programs. In the first wave of cuts, Trump's administration has withheld funding for energy projects in 16 Democratic states and infrastructure projects in New York City and Chicago .

The shutdown has also brought attention to the Affordable Care Act (Obamacare), with Democrats demanding that subsidies for health care plans through Obamacare be extended before they expire at the end of this year. Republicans have refused to concede on this demand, leading to the ongoing shutdown .

The shutdown is set to continue at least into the early part of next week, with the Senate reconvening to hold more votes on competing proposals to end the shutdown. However, a resolution seems unlikely without a compromise on the key issues at stake .