On Sunday, Kevin Hassett, the Director of the White House National Economic Council, warned that layoffs for federal employees could commence if negotiations in Congress aimed at ending the ongoing government shutdown prove fruitless. Speaking on CNN's State of the Union, Hassett expressed cautious optimism, stating, "I think that everybody's still hopeful that when we get a fresh start at the beginning of the week, we can get the Democrats to see that it’s just common sense to avoid layoffs like that."
The government shutdown has now entered its fifth day, with no clear resolution in sight. As both parties dig in on their respective positions, Democrats are steadfast in their demands for health-care provisions, particularly advocating for the inclusion of a permanent extension of enhanced premium tax credits in any funding legislation. On the other hand, Republicans maintain that discussions regarding health care should be postponed until December, insisting that these negotiations should not be part of the current shutdown crisis.
As the shutdown continues into a new week, the Senate faced another setback on Friday, failing to pass two funding bills that could have alleviated the situation. The Republican proposal aimed to fund the government through late November, while the Democratic bill included additional health-care funding. Both measures had previously failed multiple times in the upper chamber last week, underscoring the ongoing impasse.
The Trump administration has consistently warned of potential mass layoffs during the current government shutdown. Last week, President Donald Trump indicated that the shutdown might provide an unprecedented opportunity to reduce the size of federal agencies and lay off government workers. However, these threats have yet to materialize into actual layoffs.
Hassett mentioned on Sunday that both Trump and Office of Management and Budget Director Russ Vought are preparing to take action if necessary, although they remain hopeful that a resolution can be achieved through negotiations. "We think the Democrats, there’s a chance that they’ll be reasonable once they get back into town on Monday," Hassett remarked on CNN. He added, "If they are, then I think there’s no reason for those layoffs."
As the situation develops, all eyes will be on Congress to see if they can reach a compromise that prevents further disruption and protects federal employees from impending layoffs.
