The Trump administration has threatened to commence mass layoffs of federal workers if President Trump determines that negotiations with Democrats to end the government shutdown are futile, escalating a standoff centered on healthcare subsidies and federal spending.
On Sunday, October 5, White House National Economic Council Director Kevin Hassett stated that mass layoffs of federal workers would begin if President Trump decides that negotiations with congressional Democrats are "absolutely going nowhere" . Hassett described the administration's position as one of preparation, noting that "President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don't" . He expressed hope that Democrats would see "common sense" and avert the layoffs when the week begins . President Trump himself placed the blame for any potential job losses on Democrats, telling reporters, "Anybody laid off that's because of the Democrats" .
The federal government entered a partial shutdown on October 1, the start of fiscal year 2026, after Senate Democrats rejected a short-term funding measure passed by the Republican-controlled House . As of Sunday, the fifth day of the shutdown, there were no tangible signs of negotiations between top congressional leaders . Senate Democratic leader Chuck Schumer asserted that Democrats have "refused to talk with us," while maintaining that the impasse could only be solved through direct talks between the president and top congressional leaders . This political stalemate ensures the shutdown will last at least until Monday, when the Senate is scheduled to hold another vote .
The core of the funding dispute revolves around Democrats' demand for a permanent extension of enhanced premium tax credits that help Americans purchase health insurance under the Affordable Care Act (ACA) . These subsidies are set to expire at the end of the year, and without congressional action, about four million people are projected to lose coverage and premiums are expected to rise for millions more . Republicans, led by Senate Majority Leader John Thune, have stated they are willing to address the healthcare concerns but insist that Democrats must first agree to reopen the government . President Trump has echoed the desire to "fix" the ACA, which he called a "disaster," but has not agreed to the Democrats' demands .
The threat of mass layoffs has been met with legal action. The American Federation of Government Employees (AFGE) and the American Federation of State, County and Municipal Employees (AFSCME) filed for a temporary restraining order to block the administration's planned firings . The unions argue that the Office of Management and Budget, led by Director Russ Vought, has violated the law by directing agencies to conduct mass firings during a shutdown . This confrontation is part of a broader political clash. The Trump administration has framed the potential layoffs as a consequence of Democratic obstruction , while Democrats like Senator Adam Schiff have criticized the president for not engaging seriously, stating, "We need a president who can act like an adult, who can come to the table and negotiate" .