The Trump administration is preparing for mass layoffs of federal employees if President Donald Trump concludes that negotiations with congressional Democrats to end the partial government shutdown are “absolutely going nowhere,” a senior White House official said on Sunday.
As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN’s State of the Union that there was still hope Democrats would relent, potentially avoiding both the prolonged shutdown and the threatened layoffs outlined by White House Budget Director Russell Vought.
“President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don’t,” Hassett said.
When asked later by reporters when layoffs would begin, Trump replied briefly:
“It’s taking place right now,”
offering no further details.
The Office of Management and Budget (OMB), which has spearheaded Trump’s efforts to reduce the size of the federal government, did not immediately respond to requests for comment.
NO PROGRESS IN TALKS
So far, there have been no visible signs of progress between the White House and congressional leaders since their meeting last week. The shutdown began on October 1, the start of the 2026 fiscal year, after Senate Democrats blocked a short-term funding bill that would have kept the government running through November 21.
“They’ve refused to talk with us,” said Senate Democratic Leader Chuck Schumer on CBS’s Face the Nation, insisting that the stalemate could only be resolved through renewed negotiations between Trump and the four top congressional leaders.
Democrats are demanding a permanent extension of enhanced premium tax credits to help Americans purchase health insurance through the Affordable Care Act (ACA), along with assurances that the White House will not attempt to roll back previously agreed spending.
Senate Majority Leader John Thune said he was willing to discuss Democratic concerns but insisted that lawmakers must first agree to reopen the federal government.
HEALTHCARE REMAINS A FLASHPOINT
Trump signaled some willingness to address the healthcare issue but reiterated Republican criticism of the ACA:
“We want to fix it so it works. Obamacare has been a disaster for the people, so we want to have it fixed so it works,” the president said.
Meanwhile, informal talks between rank-and-file senators from both parties are ongoing in hopes of bridging the divide on healthcare and other contentious issues.
Asked whether progress had been made, Democratic Senator Ruben Gallego told CNN:
“At this point, no.”
SENATE VOTE LOOMS
The Senate is scheduled to vote again on Monday for the fifth time on the stopgap funding bill already passed by the Republican-controlled House, as well as on a Democratic alternative.
Neither proposal is expected to garner the 60 votes required to advance. With a 53–47 Republican majority and one Republican opposed to the House measure, GOP leaders need at least eight Democrats to cross the aisle, but only three have done so thus far.
“It’s open up the government or else—that’s really the choice that’s in front of them right now,” Thune told Fox News’ Sunday Morning Futures.
The South Dakota Republican underscored that Democrats must act to end the shutdown before other issues can be addressed.
