White House says layoffs ‘imminent’ with no end to shutdown in sight
The White House has warned that mass layoffs of U.S. federal workers are “imminent” as the ongoing government shutdown shows no signs of resolution. Officials cautioned that what began as temporary furloughs could soon lead to permanent job losses for hundreds of thousands of employees.
The shutdown, now in its second day, marks the first in nearly seven years. It began Wednesday after Republicans and Democrats in Congress failed to agree on a new spending plan. With lawmakers locked in a stalemate, federal operations have been forced into partial closure.
President Donald Trump has urged Republican allies to seize the moment as an “opportunity” to push for long-term spending cuts, while Democrats have accused the administration of manufacturing a crisis. The next scheduled vote to break the impasse is not expected until Friday.
At issue are healthcare provisions Democrats want extended, which Republicans argue are costly and unnecessary. Senate Majority Leader John Thune said Democrats were “taking the American people hostage” for political gain, while Republicans insist their priority is simply keeping the government open.
The White House has also accused Democrats of pushing for benefits for undocumented migrants, a claim strongly denied by House Minority Leader Hakeem Jeffries. “Nowhere have Democrats suggested that we’re interested in changing federal law,” Jeffries said.
Essential workers, including border patrol agents and military personnel, are continuing to report for duty but without pay. Non-essential workers, meanwhile, have been placed on unpaid leave. Analysts estimate that nearly 40% of the federal workforce — about 750,000 people — will be affected.
In past shutdowns, furloughed workers have been compensated retroactively, but White House officials suggested this time could be different. Vice President JD Vance warned that if the shutdown continues, “we are going to have to lay people off,” signaling the possibility of long-term consequences.
Budget chief Russell Vought briefed Republican lawmakers behind closed doors on potential layoff scenarios, though few details have been made public.
On Capitol Hill, partisan divisions remain entrenched. Republican Speaker Mike Johnson dismissed the idea of further negotiations, saying, “There’s nothing to negotiate. There’s nothing we can pull out of this bill to make it any leaner or cleaner than it is.”
The looming layoffs come as the economic ripple effects of the shutdown begin to spread. Federal contractors, local businesses near government hubs, and millions of Americans who rely on federal services are bracing for prolonged disruption.
Observers note that this shutdown could have broader impact than the 2018 standoff, when some funding bills had already been passed. Without similar stopgaps in place this year, the scale of disruption is expected to be much larger.
Political analysts say both parties are digging in with an eye on public opinion, each betting that voters will blame the other side. For federal workers, however, the uncertainty is growing.
Union leaders have already warned of legal challenges if layoffs go forward, while worker advocacy groups say morale across the federal workforce is plunging.
As the standoff drags on, frustration among ordinary Americans is mounting. With no clear path forward, the shutdown’s impact on jobs, services, and the economy is likely to worsen.
Friday’s scheduled vote may offer a chance to end the deadlock, but given the hardened positions on both sides, expectations remain low. For now, tens of thousands of federal workers face a grim reality: no paychecks and the looming risk of losing their jobs altogether.
