White House Warns of Mass Layoffs as U.S. Government Shutdown Drags On

October 7, 2025 | 10:58 am

TEMPO.CO, Jakarta - The White House on Monday warned that mass layoffs of federal employees could occur if President Donald Trump concludes that negotiations with the Democratic Party to end the partial government shutdown have reached a deadlock.

According to Al Jazeera, the budget impasse began on October 1, marking the start of the new fiscal year, after the Democrat-controlled Senate rejected a short-term funding bill intended to keep federal agencies running until November 21.

Senate Democratic Leader Chuck Schumer told CBS’s Face the Nation that there has been “no meaningful conversation” with the White House since their last meeting.

“They’ve refused to talk with us,” Schumer said, stressing that the only way to end the shutdown is for President Trump and congressional leaders to resume direct negotiations.

White House Issues Layoff Warning

As the shutdown entered its fifth day on Sunday, October 5, White House National Economic Council Director Kevin Hassett said there is still hope that Democrats might compromise to prevent a wider political and economic crisis.

In an interview with CNN’s State of the Union, cited by Al Jazeera, Hassett said President Trump and Office of Management and Budget Director Russell Vought are “preparing steps and ready to take action.”

“If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs,” Hassett warned.

The Congressional Budget Office (CBO) estimates that around 750,000 federal employees could be furloughed during the shutdown, leading to a total loss of about US$400 million in income per day. Although the 2019 Government Employee Fair Treatment Act guarantees back pay, salaries will only be disbursed once the shutdown ends.

Trump Blames Democrats for Stalemate

President Trump blamed the potential layoffs on the Democratic Party, saying, “Anybody laid off, that’s because of the Democrats.”

He also accused the opposition of attempting to disrupt the celebration of the U.S. Navy’s birthday in Norfolk, Virginia. “They’re trying to ruin this incredible celebration of the United States Navy’s birthday,” Trump told reporters on Sunday.

Despite the ongoing shutdown, Trump still attended the ceremony. Before departing from the White House, he posted on Truth Social, writing, “I believe, ‘THE SHOW MUST GO ON!’”

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