President Donald Trump is set to initiate significant layoffs of federal employees if he believes that discussions with Congressional Democrats to resolve the partial government shutdown are proving ineffective.

On the fifth day of the shutdown, White House National Economic Council Director Kevin Hassett informed CNN that both President Trump and Russ Vought are making preparations to act if necessary, although they hope to avoid such measures.

‘Should the president determine that talks have completely stalled, layoffs will begin,’ Hassett stated, adding that they remain optimistic about persuading Democrats to understand that layoffs are not a sensible solution.

If Democrats relent, as anticipated by Hassett and the president, it could prevent costly shutdown consequences and the potential federal layoffs that White House budget director Russell Vought has hinted at.

Trump described the potential job cuts as ‘Democrat layoffs,’ saying: ‘Anybody laid off that’s because of the Democrats.’

Until now, Democrats have rejected the spending bill approved by Republicans because they demand a permanent renewal of expiring tax credits aiding Americans to buy private health insurance under the Affordable Care Act.

Democrats also want assurances that the White House will not try to unilaterally cancel spending agreed to in any deal. 

Republicans suggest that the matter of tax credits should be revisited in December, the month of their expiration, rather than amid a government shutdown.

The shutdown began on October 1, the start of the 2026 federal fiscal year, after the Senate failed to pass a stop-gap funding bill that would have kept the government open until November 21. 

On Friday, the Senate failed to pass the bill again after voting on it for the fourth time.  

‘They’ve refused to talk with us,’ Senate Minority Leader Chuck Schumer told CBS, adding that the impasse could only be solved by further talks between Trump and the four congressional leaders. 

Those leaders are Schumer, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune and House Speaker Mike Johnson. 

Thune has said he is willing to address Democrats’ healthcare concerns but that they must agree to reopen the federal government first. 

Trump said he would be willing to negotiate on the Affordable Care Act, also known as Obamacare, while emphasizing Republicans’ priority of making adjustments to it. 

‘We want to fix it so it works. Obamacare has been a disaster for the people, so we want to have it fixed so it works,’ he said. 

Democrats and Republicans have been holding informal talks with the aim of opening the government by finding common ground on healthcare and other issues that have held up the funding bill in Congress. 

When asked if lawmakers are any closer to a deal, Democratic Senator Ruben Gallego told CNN: ‘At this point, no.’ 

The senate is scheduled to vote on the stop-gap funding bill for a fifth time on Monday. 

The bill has already passed through the Republican-controlled House of Representatives, but it is not expected to receive the 60 senate votes it needs to pass through that chamber. 

The Senate will also vote on a Democrat-approved alternative to the bill, but that is not expected to receive the necessary number of votes to pass either. 

Republicans currently control the senate with 53 seats to Democrats’ 47. One Republican and every Democrat is opposed to the spending bill, meaning Republicans will need at least eight Democrats to support the measure for it to pass. 

Only three Democrats have crossed the aisle thus far, so the Republican push to find five more votes continues. 

‘It’s open up the government or else,’ Thune told Fox News.

‘That’s really the choice that’s in front of them right now.’