WASHINGTON, Oct 5 – The White House has warned that mass layoffs of federal employees could begin soon if discussions between President Donald Trump and congressional Democrats to end the ongoing partial government shutdown fail to make progress. Kevin Hassett, Director of the National Economic Council, indicated that the administration is preparing for significant job cuts if the negotiations continue to stall.
As the shutdown entered its fifth day, Hassett expressed cautious optimism that Democrats might eventually compromise to prevent further economic disruption. During an interview on CNN’s “State of the Union,” he noted that while the administration was preparing for the worst, there was still hope that a resolution could be reached early next week.
“President Trump and budget director Russ Vought are organizing contingency plans in case the deadlock continues,” Hassett said. “However, the main goal is still to reach a mutual understanding. If the president believes negotiations are completely stuck, layoffs will begin. Yet, there’s optimism that once a new week begins, we can convince Democrats that preventing mass layoffs is simply a matter of common sense.”
Despite the hopeful tone, there has been little visible movement toward a breakthrough. Since last week’s meeting between Trump and top congressional leaders, both sides have remained firm in their positions. The shutdown, which began on October 1 marking the start of fiscal year 2026, resulted from the Senate’s rejection of a short-term funding measure intended to keep federal agencies operational until late November.
The White House’s push to maintain government operations without concessions has clashed sharply with Democratic demands. Lawmakers from the Democratic Party are insisting on a permanent extension of enhanced premium tax credits that help Americans afford private health insurance through the Affordable Care Act. They also want written guarantees that the administration will not attempt to override or cancel spending agreements included in any future deal.
House Democratic leader Hakeem Jeffries criticized the administration’s approach, suggesting that President Trump was not treating the matter with the seriousness it deserves. Appearing on NBC’s “Meet the Press,” Jeffries condemned what he described as the president’s lack of focus during a national crisis. “What we’ve seen from this administration is a pattern of irresponsibility,” Jeffries said. “Instead of leading constructive discussions, we see distractions, misinformation, and the president spending time on the golf course while federal workers face uncertainty. That’s not leadership.”
The partial shutdown has already led to mounting concerns across various government departments. Many federal workers are bracing for potential furloughs or delayed paychecks, while agencies warn of disruptions in public services. The Office of Management and Budget has reportedly been reviewing which departments could sustain temporary staff reductions and which would be forced to halt operations entirely.
Economists warn that an extended shutdown could have ripple effects throughout the broader economy. Previous shutdowns have slowed consumer spending, delayed federal contracts, and weakened public confidence in government stability. Businesses that rely on federal operations, such as contractors and local suppliers, could also face financial strain if the impasse continues.
Political analysts suggest that the dispute underscores deep divisions between the White House and congressional Democrats, not just over budget priorities but also over healthcare policy and spending authority. Democrats have accused the administration of leveraging federal workers’ livelihoods as political bargaining chips, while the president’s allies argue that the opposition is refusing to engage in realistic negotiations.
Hassett emphasized that the administration still hopes for cooperation, framing the layoffs as a last-resort option rather than a predetermined outcome. “Nobody wants to see federal workers lose their jobs,” he stated. “But at some point, the government has to make responsible decisions if funding isn’t approved. The president remains open to reasonable proposals, but he won’t compromise on what he believes are essential fiscal priorities.”
For many affected employees, uncertainty is growing. Some federal departments have started notifying workers about potential furlough plans, while union leaders have urged Congress and the White House to act quickly. “Our members are dedicated public servants who just want to do their jobs,” said one federal workers’ representative. “They shouldn’t have to pay the price for political gridlock.”
Observers note that the current impasse could test both political strategy and public patience. If layoffs do occur, they could significantly influence public perception of the administration’s handling of the economy and government operations. The outcome of the shutdown standoff may therefore carry lasting political and economic consequences well beyond the immediate crisis.
As Washington braces for another week of uncertainty, the tone from the White House remains a mix of preparation and guarded hope. Hassett’s remarks reflect a broader message from the administration: the government stands ready to take tough measures if needed, but officials continue to look for a way to break the deadlock without triggering mass layoffs.