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Economy|Donald TrumpWhite House threatens mass layoffs amid deepening US government shutdownUS President Donald Trump blames Democrats for looming federal layoffs as shutdown enters fifth day.

## Potential Federal Worker Layoffs Amid Government Shutdown

HBy Henry DaltonOct 06, 20251 min read

Potential Federal Worker Layoffs Amid Government Shutdown

Mass layoffs of federal workers could commence if negotiations between the United States President and congressional Democrats regarding the ongoing government shutdown result in an impasse.

As of Sunday, the shutdown reached its fifth day. White House National Economic Council Director Kevin Hassett indicated the possibility of Democrats conceding to avoid a significant political and economic crisis.

No substantial negotiations have occurred since the last meeting between the President and congressional leaders. The deadlock began on October 1, the start of the federal fiscal year, following the Senate Democrats' rejection of a short-term funding bill to keep government agencies operational through November 21.

Senate Democratic leader Chuck Schumer stated that renewed discussions between the President and congressional leaders are essential to resolve the deadlock. Democrats are seeking a permanent extension of enhanced premium tax credits under the Affordable Care Act (ACA) and assurances against unilateral spending cuts by the White House.

No substantial negotiations have occurred since the last meeting between the President and congressional leaders.
Henry Dalton · Thehackingpost

Republican Senate Majority Leader John Thune expressed willingness to address Democrats’ concerns but emphasized the need to reopen the government first. Discussions on healthcare reform are also on the table, with Republicans highlighting the need for revisions to the Affordable Care Act.

Rank-and-file senators from both parties are engaging in informal discussions on healthcare and spending to resolve the impasse, but progress remains limited. The Senate plans to vote on Monday on competing funding bills, although neither is expected to secure the 60 votes necessary for advancement.

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The Congressional Budget Office reports that approximately 750,000 federal employees could face furloughs if the shutdown persists, with estimated lost compensation reaching $400 million per day. Federal workers are assured backpay under the 2019 Government Employee Fair Treatment Act, but payments will resume only once the shutdown concludes.

Based on reporting by Al Jazeera.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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