White House: Mass layoffs will start if shutdown talks 'going nowhere'

The US will start mass layoffs of federal workers if President Donald Trump decides negotiations with congressional Democrats to end a partial government shutdown are "absolutely going nowhere," a senior White House official said.

As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN's State of the Union programme he still saw a chance that Democrats would back down, averting a costly shutdown and federal employee layoffs that have been threatened by White House budget director Russell Vought.

"President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don't," Hassett said.

Later on Sunday, Trump was asked by reporters when the administration would begin laying off federal workers. Trump responded, without elaborating: "It's taking place right now."

The White House's Office of Management and Budget, which has played a key role in Trump's campaign to sharply scale back the size of the federal government, did not immediately respond to a request for comment.

NO SIGN OF TALKS

No tangible signs of negotiations have emerged between congressional leaders since Trump met with them last week. The shutdown began on October 1, the start of federal fiscal 2026, after Senate Democrats rejected a short-term funding measure that would keep federal agencies open through November 21.

"They've refused to talk with us," Senate Democratic leader Chuck Schumer told CBS' Face the Nation programme, saying the impasse could be solved only by further talks between Trump and the four congressional leaders.

Democrats are demanding a permanent extension of enhanced premium tax credits to help Americans purchase private health insurance through the Affordable Care Act and assurances that the White House will not try to unilaterally cancel spending agreed to in any deal.

Senate Majority Leader John Thune has said he is willing to address Democrats' concerns but that they must first agree to reopen the federal government.

Trump also expressed an interest in the healthcare question while emphasizing Republican interests in reforming the ACA, also known as Obamacare. "We want to fix it so it works. Obamacare has been a disaster for the people, so we want to have it fixed so it works," the president said.

SENATE VOTE MONDAY

Rank-and-file Senate Democrats and Republicans have held informal talks aimed at finding common ground on healthcare and other issues in hopes of reaching a deal to reopen the government.

Asked if the lawmakers are any closer to a deal, Democratic Senator Ruben Gallego told CNN: "At this point, no."

On Monday, the Senate is due to vote for a fifth time on the stopgap funding bill that has already passed the Republican-controlled House of Representatives and on a Democratic alternative. Neither measure is expected to receive the 60 votes needed to advance.

With a 53-47-seat majority and one Republican opposed to the House funding bill, Republican leaders need at least eight Democrats to support the measure but have seen only three cross the aisle so far.

"It's open up the government or else," John Thune told the Fox News programme Sunday Morning Futures. "That's really the choice that's in front of them right now," the South Dakota Republican said.