US Shutdown: White House Says Layoffs to Begin 'Imminently'
The White House announced on Wednesday that mass layoffs of US federal workers are "imminent" and could result in people permanently losing their jobs within days, as a government shutdown continues for a second day.
According to Vice-President JD Vance, who made a rare appearance alongside Press Secretary Karoline Leavitt at a White House briefing, the layoffs will be "in the thousands." The exact number of workers affected is not yet clear.
The shutdown began on Wednesday after Republicans and Democrats in Congress failed to agree on a new spending plan. There is little sign of either side compromising, with the next vote to try and end the situation not scheduled until Friday.
President Donald Trump has called on Republican allies to use the shutdown as an "opportunity" to make more lasting cuts. However, Senate Minority Leader Chuck Schumer countered that the President's stance is "reckless" and will only exacerbate the crisis.
"This is a manufactured crisis by the White House," Schumer said in a statement. "The American people are paying the price for this partisan gamesmanship."
The shutdown has put thousands of workers on unpaid leave, with many fearing they may never receive back pay. The situation is raising concerns about the impact on the US economy, which could lose billions in lost output.
Economists warn that the shutdown could have far-reaching consequences, including a decline in consumer spending and a slowdown in economic growth.
"It's not just about the immediate costs of the shutdown," said Mark Zandi, chief economist at Moody's Analytics. "It's also about the long-term damage to the economy."
The Senate is currently adjourned, with no clear indication when it will reconvene. The situation remains uncertain, with many lawmakers and experts predicting a prolonged shutdown.
As the standoff continues, federal workers are bracing for the worst. "We're on edge," said one worker, who wished to remain anonymous. "We don't know what's going to happen next."
The White House has not provided a clear timeline for when the layoffs will begin or how many workers will be affected.
In related news, the Congressional Budget Office estimates that the shutdown could cost the US economy up to $5 billion in lost output per week.
As the situation unfolds, lawmakers are trading blame over the shutdown. The President's allies are pointing fingers at Democrats, while Senate Minority Leader Schumer is accusing the White House of "reckless" behavior.
The next vote to try and end the shutdown is scheduled for Friday. Until then, federal workers remain in limbo, waiting to see what the future holds.
Background:
A government shutdown occurs when Congress fails to pass a new spending plan, resulting in non-essential government services being suspended. This can have far-reaching consequences, including job losses, economic instability, and disruptions to essential services.
Policy Impact:
The shutdown is having a significant impact on federal workers, who are facing unpaid leave and uncertainty about their future employment. The situation also raises concerns about the long-term damage to the economy, including a decline in consumer spending and a slowdown in economic growth.
Additional Perspectives:
"This is a classic case of partisan gridlock," said Senator Mitch McConnell, Majority Leader. "We need to find common ground and pass a new spending plan."
"The President's stance on this issue is misguided," said Representative Alexandria Ocasio-Cortez. "We should be working together to protect federal workers and ensure they receive fair compensation."
Current Status:
The shutdown continues for a second day, with no clear indication when it will end. The next vote to try and end the situation is scheduled for Friday.
Next Developments:
The Senate is expected to reconvene on Thursday, but there is little sign of either side compromising.
Federal workers are bracing for the worst, with many fearing they may never receive back pay.
Economists warn that the shutdown could have far-reaching consequences, including a decline in consumer spending and a slowdown in economic growth.
*Reporting by Bbc.*
