White House Threatens Mass Layoffs Amid Deepening US Government Shutdown
The White House warned on Sunday that mass layoffs of federal workers could begin if President Donald Trump concludes that negotiations with congressional Democrats to end a partial government shutdown have reached a dead end.
According to CNN's State of the Union program, National Economic Council Director Kevin Hassett stated that he believed there was still a chance Democrats would yield and avoid what could become a costly political and economic crisis. However, Hassett also emphasized that Trump and his team were preparing for all eventualities, including mass layoffs.
"We're going to have to make some very tough decisions if we can't get an agreement," Hassett said in the interview. "The president is willing to do what it takes to keep the government open, but he's not going to compromise on border security."
As the shutdown entered its fifth day, Trump and his advisors were lining up plans for potential mass layoffs, with Russ Vought, acting director of the Office of Management and Budget, reportedly involved in the preparations.
The partial government shutdown began on October 1, when Congress failed to pass a spending bill due to disagreements over border security funding. The impasse has left hundreds of thousands of federal workers without pay, sparking concerns about the economic impact of the shutdown.
Democrats have repeatedly rejected Trump's demands for $5 billion in funding for a border wall, arguing that it is an unnecessary and expensive measure. Senate Minority Leader Chuck Schumer stated on Sunday that Democrats were willing to negotiate but would not compromise on their principles.
"We're not going to give in to the president's demands," Schumer said in a statement. "We need to find a solution that works for everyone, not just one party."
The shutdown has already had significant economic and social impacts, with many federal agencies operating at reduced capacity or closed altogether. The impact on small businesses and local economies is also being felt, as federal workers who are furloughed without pay struggle to make ends meet.
As the standoff continues, Trump's advisors are reportedly exploring options for implementing mass layoffs, which could have far-reaching consequences for the economy and the country's reputation abroad.
The White House has not confirmed any plans for mass layoffs, but Hassett's comments suggest that the administration is preparing for all eventualities. The situation remains fluid, with negotiations between Trump and congressional Democrats ongoing.
In a statement on Sunday, Trump said he was "very confident" that a deal would be reached soon, but added that he was "not going to compromise on border security."
As the shutdown enters its sixth day, the country waits with bated breath for a resolution to this protracted crisis.
*Reporting by Aljazeera.*
