Imminent Layoffs Loom as US Government Shutdown Continues

Sat Oct 11 2025 08:02:10 GMT+0300 (Eastern European Summer Time)

The White House warns that mass layoffs of federal workers could start soon as both parties fail to reach an agreement on government funding, leading to a potential long-term shutdown affecting hundreds of thousands.

As the government enters a shutdown with no end in sight, the White House has announced that layoffs for federal workers are imminent. Both parties in Congress are engaged in a fierce blame game, failing to negotiate a funding agreement. The shutdown threatens the jobs of many workers and could have significant economic repercussions.

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 are few signs of compromise, with a vote to end the shutdown failing just hours after it started. The Senate has since adjourned, raising fears that the shutdown could extend, risking hundreds of thousands of jobs and threatening to cost the US economy billions in lost output.

During a White House briefing Wednesday, Vice-President JD Vance and Press Secretary Karoline Leavitt accused Democrats of political maneuvering. 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 said.

Leavitt added that mass job cuts would occur within days, stating, Sometimes you have to do things that you don't want to do; Democrats put us in this position. This reflects a broader blame game between both parties, with Senate Democrat Chuck Schumer accusing Republicans of trying to bully Democrats into accepting their funding plan.

Democrats are demanding guarantees for healthcare funding in exchange for a spending deal, while Republicans advocate a temporary funding measure until mid-November.

Democrats claim they permitted the shutdown to negotiate necessary healthcare benefits for lower-income Americans, but have faced roadblocks in talks with Republicans.

Senator Chris Murphy remarked, Why are they boycotting negotiations? The government will open when Republicans get serious about talking to Democrats. Meanwhile, Republicans have stated that healthcare extensions are a lower priority and that the focus must remain on keeping the government open.

An expected 40% of federal workers—around 750,000—could be put on temporary leave, with past instances of furloughed employees receiving back pay afterwards.

While essential workers may continue working without pay, non-essential employees will be on unpaid leave as the shutdown continues.

Furthermore, the White House has hinted at the possibility of permanent layoffs if the shutdown persists. Vance noted that we are going to have to lay people off if matters do not resolve soon.

Little progress appears to be made on Capitol Hill to break the impasse, with a further vote on a short-term funding bill proposed by Republicans expected on Friday.