The U.S. government shutdown has entered its fifth day, and the White House is warning of possible mass layoffs of federal workers. The shutdown began on October 1, the first day of the 2026 fiscal year, after Senate Democrats blocked a short-term funding bill.
President Donald Trump linked the risk of layoffs to stalled negotiations with Democrats. When asked about the timeline, he said, “It’s taking place right now.” The Office of Management and Budget, which has been pushing for a leaner government, has not made any public comments.
Kevin Hassett, director of the White House National Economic Council, told CNN that the administration hopes for a resolution but is preparing for cuts if talks fail. He added that Trump and budget chief Russ Vought are “lining things up” in case they must act.
Talks remain at a standstill. Senate Democratic leader Chuck Schumer accused the White House of refusing to negotiate, while Republicans insist Democrats must first agree to reopen the government. Democrats want permanent healthcare subsidies and safeguards on future spending. Both chambers will vote again on Monday, but neither party’s proposal is expected to reach the 60 votes needed to move forward.
