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US shutdown: White House warns 'mass layoffs’ imminent

Financial Express Mumbai

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October 06, 2025

THE TRUMP ADMINISTRATION will start mass layoffs of federal workers if President Donald Trump decides negotiations with congressional Democrats to end a partial government shutdown are “absolutely going nowhere,” White House National Economic Council Director Kevin Hassett said.

- REUTERS

As the shutdown entered its fifth day, Hassett told CNN that he still saw a chance that Democrats would back down, averting a costly shutdown and federal employee layoffs that have been threatened by White House budget director Russell Vought.

“President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don’t,’ he said.

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