Imminent Layoffs as US Government Shutdown Continues: A Deepening Crisis

Fri Oct 03 2025 02:47:43 GMT+0300 (Eastern European Summer Time)

As the US government shutdown approaches its first weekend, the White House warns of imminent layoffs affecting federal workers. Both parties remain at an impasse over a new spending plan, with dire implications for the economy.

The ongoing government shutdown has led to a warning from the White House about imminent federal layoffs, as both Democrats and Republicans fail to negotiate a spending plan. The shutdown, which began after the midnight deadline on Wednesday, threatens hundreds of thousands of jobs and could cost the economy billions. Despite criticisms and blame-shifting, both parties remain entrenched in their positions, complicating efforts to reach an agreement.

Mass layoffs of US federal workers will begin within two days, the White House states, 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.

Indications suggest a lack of willingness to compromise, leading to a failed vote to end the shutdown just hours after it commenced. The Senate has since adjourned, amplifying fears that the shutdown could persist, potentially jeopardizing hundreds of thousands of jobs and costing the US economy billions in lost output.

During an afternoon briefing at the White House, Vice-President JD Vance, alongside Press Secretary Karoline Leavitt, accused the Democrats of playing political games. 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, Vance asserted.

Leavitt confirmed that mass job cuts would commence within two days, adding that sometimes you have to do things that you don't want to do, while placing blame on Democrats for the current situation. The exchange underscores a bitter blame game as Senate Democrat leader Chuck Schumer accused Republicans of bullying tactics to garner support for their funding plan.

Democrats are insisting on guarantees for healthcare funding before agreeing to a spending deal, while Republicans prefer a temporary funding extension to keep the government operational until mid-November at current levels. Democrats argue they allowed the government to shut down to negotiate the preservation of healthcare benefits for lower-income Americans, calling out Republicans for their reluctance to negotiate these critical terms.

Senator Chris Murphy, a Democrat from Connecticut, criticized Republican tactics, highlighting that the government will only reopen when serious negotiations begin. Meanwhile, Republicans maintain that keeping the government open is their priority, with Senate Majority Leader John Thune asserting that Democrats have essentially taken the American public hostage for political gain.

Currently, essential federal workers may be compelled to continue working without pay, while non-essential government employees are placed on unpaid leave. Past occurrences indicate that these workers are typically reimbursed retrospectively.

With analysts predicting that this shutdown could be larger than the last one in 2018—where some funding bills were passed—approximately 40% of federal workers (around 750,000 individuals) could be temporarily furloughed.

Some federal employees were already furloughed on Wednesday, with the administration hinting at potential permanent layoffs if the shutdown prolongs. Vance remarked, Let's be honest, if this thing drags on, we are going to have to lay people off.\

The standoff remains unresolved as little appetite for compromise was observed on Capitol Hill. Republican Speaker of the House Mike Johnson stated, 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. Another vote on the GOP's short-term funding bill is anticipated for Friday.