White House Warns of Imminent Layoffs Amid Government Shutdown
The White House has indicated that mass layoffs of US federal workers are "imminent" as the government shutdown enters its second day. With lawmakers trading blame and failing to agree on a new spending plan, the potential for permanent job losses looms, impacting hundreds of thousands of employees and threatening billions in economic output.
Political Blame Game
The shutdown began after Republicans and Democrats in Congress failed to agree on a new spending plan. President Donald Trump has urged Republican allies to seize this "opportunity" to implement lasting cuts. Vice-President JD Vance, alongside Press Secretary Karoline Leavitt, accused Democrats of playing political games, while Democrats, led by Chuck Schumer, accuse Republicans of attempting to "bully" them into accepting a flawed funding plan.
“If they are so worried about the effect this is having on the American people, and they should be, what they should do is reopen the government, not complain about how we respond,” stated Vice-President Vance at a White House briefing.
Potential Impact and Layoff Details
Leavitt indicated that mass job cuts could happen very soon, possibly before the end of the week, saying "two days, imminent, very soon". Trump previously warned of irreversible cuts to "Democrat things". His administration announced $18 billion would be withheld for infrastructure projects in New York City, a Democratic stronghold. Experts anticipate this shutdown could be larger than the one in 2018, potentially impacting around 750,000 federal workers.
Healthcare Debate
Democrats want to secure guarantees on healthcare funding before agreeing to a spending deal. They seek to protect healthcare benefits for lower-income Americans. Senator Chris Murphy criticized Republicans, stating, "Why are they boycotting negotiations? I've never witnessed this in my life. The matter is the government will open when Republicans get serious about it talking to Democrats." Republicans argue that the healthcare extensions Democrats seek are costly and no longer necessary due to the end of Covid-era complexities.
Shutdown Consequences
Essential workers, including border agents and the military, may be forced to work without pay. Analysts anticipate roughly 40% of federal workers, or approximately 750,000 people, could be put on temporary leave. Vance also claimed, despite denials from Democrats, that the shutdown resulted from Democrats advocating for healthcare benefits for undocumented migrants, a claim denied by House Minority Leader Hakeem Jeffries. House Speaker Mike Johnson stated there is "nothing to negotiate" regarding the Republican funding bill. Another vote is expected on Friday.
Immediate Actions and Responses
The US Patent and Trademark Office (USPTO) has already begun firing personnel in business support units. About 140 of the USPTO’s 14,000 employees received notice of their firing. Director of the Office of Management and Budget (OMB), Russ Vought, told Republican lawmakers layoffs would be “consequential” and would begin in a day or two.
“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,” said House Speaker Mike Johnson.
Key Points of the Shutdown
- The White House warns of imminent federal worker layoffs.
- Republicans and Democrats are locked in a blame game over the shutdown.
- Healthcare funding is a major point of contention.
- Approximately 750,000 federal workers could be affected.
- Essential services may be impacted.
| Impact Area | Description |
|---|---|
| Federal Workers | Potential for layoffs and furloughs |
| Healthcare | Disputes over healthcare funding and subsidies |
| Economy | Risk of billions in lost output |
| Essential Services | Possible disruptions to essential services |
