Federal Layoffs Expected If Trump Ends Shutdown Talks

President Donald Trump's administration is warning that large-scale layoffs of federal workers could begin imminently if negotiations with congressional Democrats to end the partial government shutdown fail. Kevin Hassett, director of the National Economic Council, emphasized that if talks "are absolutely going nowhere," President Trump may order widespread layoffs but expressed hope that Democrats might compromise to avoid this outcome. The shutdown, now in its fifth day, resulted from Senate Democrats rejecting a short-term funding measure, with Democrats demanding a permanent extension of enhanced premium tax credits for health insurance under the Affordable Care Act. Republicans argue such discussions should occur later, escalating the standoff. Despite the threat of layoffs, the Trump administration has not yet followed through but is reportedly preparing to act, viewing the shutdown as an opportunity to reduce federal agency size and workforce. The White House remains hopeful that negotiations will resume productively when Congress returns, potentially averting layoffs and further economic harm.