The Trump administration is preparing for potential mass layoffs of federal employees as the partial government shutdown entered its fifth day, according to White House officials. National Economic Council Director Kevin Hassett told CNN’s State of the Union that President Donald Trump may order layoffs if negotiations with congressional Democrats “go absolutely nowhere.”
Hassett said Trump and Acting Budget Director Russell Vought are “lining things up” for possible action, though they hope to avoid layoffs. Later that day, Trump told reporters layoffs were already “taking place right now,” signaling escalating pressure on Congress to reach a deal.
The shutdown, which began October 1 at the start of the 2026 fiscal year, followed Senate Democrats’ rejection of a short-term funding bill extending government operations through November 21. So far, talks between the White House and Democratic leaders have stalled. Senate Democratic Leader Chuck Schumer accused Republicans of refusing to negotiate, stating that only renewed talks among top congressional leaders and the president could resolve the impasse.
Democrats are demanding a permanent extension of enhanced Affordable Care Act premium tax credits and assurances that Trump will not cancel future spending agreements. Republican Senate Majority Leader John Thune has urged Democrats to reopen the government first before addressing healthcare concerns.
Trump expressed willingness to “fix” the ACA, calling Obamacare “a disaster for the people,” while maintaining Republicans’ goal of reforming the healthcare system.
The Senate is scheduled to vote Monday on competing short-term funding bills — one backed by the GOP-controlled House and another proposed by Democrats. However, neither is expected to secure the required 60 votes. With Republicans holding a slim 53-47 majority and one member opposed, at least eight Democrats would need to support the House bill to pass it.
Thune summarized the situation bluntly on Fox News: “It’s open up the government or else.”


Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
TrumpRx.gov Highlights GLP-1 Drug Discounts but Offers Limited Savings for Most Americans
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Australia’s December Trade Surplus Expands but Falls Short of Expectations
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal
New York Legalizes Medical Aid in Dying for Terminally Ill Patients
China Warns US Arms Sales to Taiwan Could Disrupt Trump’s Planned Visit
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 



