Imminent Layoffs Loom as US Government Shutdown Persists

Sat Oct 11 2025 08:21:47 GMT+0300 (Eastern European Summer Time)

The White House warns of impending layoffs in the wake of a government shutdown, as tensions escalate between Republicans and Democrats with no signs of resolution.

With the US government shutdown now in effect, the White House has announced that mass layoffs of federal workers are expected to begin within two days. This shutdown, the first in nearly seven years, stems from political gridlock as Republicans and Democrats struggle to reach a spending agreement. The Senate has adjourned, raising concerns about prolonged adverse effects on federal employees and the economy.

Mass layoffs of US federal workers will begin within two days, the White House says, as lawmakers trade blame over the first government shutdown in almost seven years.

The shutdown began on Wednesday after Republicans and Democrats in Congress failed to agree on a new spending plan before the midnight deadline.

There is little sign that either side is willing to compromise, and a vote to end the shutdown failed just hours after it began.

The Senate has since adjourned, raising fears that the shutdown could drag on and threaten hundreds of thousands of jobs and cost the US economy billions in lost output.

At a White House briefing on Wednesday afternoon, Vice-President JD Vance and Press Secretary Karoline Leavitt accused Democrats of political games. “If they are so worried about the effect this is having on the American people, they should reopen the government,” Vance stated.

Leavitt indicated that job cuts would happen soon, attributing the situation to Democratic actions. Tensions escalated with Senate Minority Leader Chuck Schumer accusing Republicans of attempted coercion.

While Democrats seek guarantees on healthcare funding before they consent to a spending deal, Republicans aim for a temporary measure to keep the government operational until mid-November.

Without a funding agreement, analysts forecast that this shutdown will impact more federal workers than in previous occurrences, possibly leaving around 750,000 on temporary leave.

In recent statements from the White House, permanent layoffs were also threatened if the impasse persists. Vance previously claimed the standoff is driven by Democrats pushing for healthcare benefits for undocumented migrants, a claim politicians from the Democratic party have denied.

Republicans maintain that the priority remains to keep the government running, while Democrats argue for the protection of healthcare benefits critical for lower-income families.

The situation remains tense as Capitol Hill shows little willingness to reach an agreement. Speaker of the House Mike Johnson stated, “There’s nothing to negotiate,” with a potential vote on further funding scheduled for Friday.