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The Trump administration is preparing to lay off federal employees if talks with Democrats fail to end a partial government shutdown that has gone on for days.
White House National Economic Council Director Kevin Hassett said that preparations were being made in case negotiations “go absolutely nowhere.” Appearing on CNN’s State of the Union, Hassett said Donald Trump and Office of Management and Budget Director Russell Vought were “lining things up and getting ready to act if they have to, but hoping that they don’t.”
Later that day, when asked by reporters if layoffs had already begun, Trump replied, “It’s taking place right now,” without elaborating. The Office of Management and Budget, which has supported Trump’s long-running effort to reduce the size of the federal workforce, declined to comment.
Talks remain at a standstill
No significant progress has been made since Trump last met congressional leaders, and neither side has signaled readiness to compromise. The shutdown began on October 1, marking the start of fiscal 2026, after Senate Democrats rejected a short-term funding bill designed to keep agencies open through November 21.
“They’ve refused to talk with us,” said Senate Democratic leader Chuck Schumer, speaking on CBS’s Face the Nation. He said negotiations among the president and congressional leaders were the only way to end the impasse.
Democrats are seeking a permanent extension of enhanced premium tax credits under the Affordable Care Act, as well as assurances that the White House will not unilaterally block spending in any future agreement.
Senate Majority Leader John Thune said he is open to addressing Democrats’ demands but maintained that reopening the government must come first. “It’s open up the government or else,” Thune told Fox News’s Sunday Morning Futures.
Senate prepares new vote
Trump reiterated his interest in addressing healthcare reform, describing the ACA as “a disaster for the people.” He said Republicans want to “fix it so it works.”
Informal bipartisan discussions have taken place in the Senate, but so far they have not produced a deal. Democratic Senator Ruben Gallego told CNN there had been “no” movement toward a resolution.
The Senate is expected to vote Monday on both the House-passed stopgap bill and a Democratic alternative. Neither proposal is likely to secure the 60 votes required to move forward.
Republicans hold a 53-47 majority but would need at least eight Democratic votes. So far, only three Democrats have supported the Republican measure, leaving the shutdown - and the threat of layoffs - unresolved.
