World

White House warns of federal layoffs as U.S. shutdown talks stall

Trump administration signals job cuts if deadlock with Democrats persists; next Senate vote unlikely to resolve impasse

Updated 1 year ago · Published on 06 Oct 2025 10:09AM

White House warns of federal layoffs as U.S. shutdown talks stall
Trump confirms layoffs had already begun, though he declined to provide details, stating only, “It’s taking place right now” - October 6, 2025

THE White House has warned that mass layoffs of federal workers will commence if negotiations with congressional Democrats over the ongoing US government shutdown reach a dead end.

As the partial shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN’s State of the Union that President Donald Trump and acting budget director Russell Vought were prepared to begin job cuts if necessary.

“President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don't,” Reuters cited Hassett saying.

Later on Sunday, Trump confirmed to reporters that layoffs had already begun, though he declined to provide details, stating only, “It’s taking place right now.”

The standoff began on 1 October, the first day of the 2026 fiscal year, after Senate Democrats rejected a short-term funding bill that would have kept federal agencies open until 21 November.

Democrats have insisted on a permanent extension of premium tax credits under the Affordable Care Act (ACA) and guarantees that the White House will not attempt to roll back spending commitments reached in any funding deal.

“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer said on CBS’ *Face the Nation*. “The impasse can only be resolved through further talks between the president and the congressional leadership.”

Despite pressure from Democrats, Senate Majority Leader John Thune maintained that government operations must first resume before broader issues, such as healthcare, can be addressed. “It’s open up the government or else,” Thune said on Fox News’ *Sunday Morning Futures*.

Trump echoed a willingness to engage on healthcare reform but reiterated his long-held view that the ACA — or Obamacare — needs fixing. “We want to fix it so it works. Obamacare has been a disaster for the people,” he said.

Meanwhile, tensions flared over the weekend as protesters clashed with law enforcement outside a federal building in Portland, underlining growing public frustration over the shutdown.

The Senate is expected to vote again on Monday on a funding bill already passed by the Republican-led House, as well as a Democratic-backed alternative. Neither measure is expected to reach the 60-vote threshold required for passage. With a 53–47 majority in the Senate and one Republican opposing the House proposal, GOP leaders would need at least eight Democrats to cross the aisle — so far, only three have done so.

Democratic Senator Ruben Gallego told CNN the parties remain “nowhere near” a deal, despite informal cross-party discussions on healthcare and other sticking points.

The Office of Management and Budget, a key player in Trump’s efforts to downsize the federal government, has yet to comment on the timeline or scope of the potential layoffs. - October 6, 2025

Spotlight

Malaysia

Haze: MOH issues strict guidelines to ensure public health

Cocaine in shoes: Invited on vacation to Japan, only to end up as drug mules

Malaysia

PDRM awaits Philippine confirmation on alleged politician’s role in 521kg drug seizure

Malaysia

Elderly man dies after being beaten repeatedly

Malaysia

Preliminary report on helicopter crash in Long Lellang released; probe ongoing

Malaysia

‘Am I not the Tuanku?’ Tuanku Muhriz tells off Ismail Lasim (video)

By Alfian Z.M. Tahir

Malaysia

Donating to Najib: ‘One of the most foolish things I have seen’ – UM student

Malaysia

AKPS officer was seeking divorce before alleged killing, says brother

By Alfian Z.M. Tahir

You may be interested

World

Five Thai police officers wounded in attack on security compound in Yala

World

Trump: US in talks with Russia, China on nuclear disarmament

World

China urges Israel to halt West Bank settlements, prioritise Gaza aid access

World

Four reported dead in Oregon elementary school shooting, suspect killed

World

Climate change could displace 40.5 million South Asians by 2050, UN warns

World

Trump says Iran strike was postponed after military plans leaked to media

World

Yemen palace strike kills five as Houthi attacks widen across Saudi Arabia

World

Indonesia records 277,075 respiratory infections as forest fires fuel haze crisis