Government Standoff: Trump Threatens Federal Worker Layoffs Amid Shutdown Negotiations

The Trump administration is preparing for mass layoffs of federal workers amid stalled negotiations with Democrats to end a partial government shutdown. This threat emerged as the shutdown extended into its fifth day, with little progress in sight.

Kevin Hassett, White House National Economic Council Director, expressed hope that Democrats would capitulate to avert such drastic measures. However, White House budget director Russell Vought remains ready to execute the layoff strategy. When questioned about the timing, President Trump ambiguously indicated the process was already underway.

Negotiations have shown little promise, as Senate Democrats demand permanent extensions of health insurance premium tax credits among other conditions. Senate Majority Leader John Thune urges re-opening the government as a priority, with upcoming Senate votes adding pressure to resolve the impasse.