The White House confirmed on Monday that no federal employees have yet been laid off as a result of the ongoing government shutdown, but senior officials cautioned that permanent job cuts could soon follow if Congress fails to break the budget impasse.
The shutdown, now entering its sixth day, has halted a wide range of government operations and left hundreds of thousands of federal workers uncertain about their futures. While prior shutdowns typically involved temporary furloughs followed by retroactive pay once funding was restored, this administration is signaling a dramatically different approach — one that could permanently reshape the federal workforce.
White House: “Layoffs Still Possible”
At Monday’s press briefing, White House Press Secretary Karoline Leavitt said that while no dismissals had yet occurred, agencies were actively coordinating with the Office of Management and Budget (OMB) to prepare for potential reductions in force.
“Unfortunately, there’s going to be a lot of pain inflicted if Congress continues to refuse to act,” Leavitt said. “The president does not want to see anyone lose their jobs, but the reality is that prolonged dysfunction has consequences.”
Her comments came just hours after President Donald Trump appeared to suggest in a social media post that layoffs had already begun. The administration quickly walked back that statement, clarifying that discussions were ongoing but no federal employees had been terminated as of Monday.
A Shift in Shutdown Strategy
Unlike previous shutdowns under both Republican and Democratic administrations, where furloughs served as a temporary cost-saving measure, the current administration has raised the possibility of permanent staff cuts. According to reports, federal agencies were instructed last week to begin drafting contingency plans for layoffs if funding is not restored soon.
This strategy appears intended to ramp up pressure on Congress, particularly Democratic lawmakers who have rejected the White House’s proposed budget, which includes major cuts to federal programs and agencies.
Vice President J.D. Vance has echoed this sentiment, warning that the administration “cannot keep paying people indefinitely to do nothing” if the shutdown drags on. “We’re committed to restructuring the government to make it more efficient,” he said during a weekend interview.
Economic and Legal Concerns Mount
The mere suggestion of permanent layoffs during a funding lapse has triggered alarm among federal employee unions and legal experts.
Under the Antideficiency Act, agencies are prohibited from spending money in the absence of appropriations. Traditionally, this has been interpreted to mean that employees performing nonessential duties must be furloughed until Congress authorizes new funding — not terminated.
Critics argue that the administration’s proposed approach could open the government to legal challenges, potentially violating employment protections and long-standing civil service rules.
Tony Reardon, president of the National Treasury Employees Union, said the White House is “weaponizing the shutdown” to achieve political ends. “These threats are not just reckless—they are illegal and morally indefensible,” he stated. “Federal workers should not be used as leverage in a budget negotiation.”
Political Fallout Intensifies
Democrats in Congress have condemned the White House’s handling of the shutdown, accusing the administration of using federal employees as bargaining chips. Senate Majority Leader Chuck Schumer called the potential layoffs “an act of cruelty and political theater,” urging Republican lawmakers to break ranks and support a bipartisan funding resolution.
Republicans, however, have largely stood behind the president’s strategy, framing the standoff as a necessary confrontation over government spending. House Speaker Mike Johnson defended the administration’s position, saying that “tough decisions” were needed to restore fiscal discipline.
Negotiations on Capitol Hill have remained stalled, with both the Senate and the House of Representatives locked in partisan gridlock. Competing funding bills — one backed by Democrats emphasizing social programs, and another supported by Republicans prioritizing defense and border security — are expected to come up for votes later this week, but neither appears likely to pass.
Economic Ripple Effects
The shutdown’s impact is already being felt across multiple sectors. Contractors who provide essential services to federal agencies are reporting delayed payments, and some small businesses that rely on government contracts are preparing for layoffs of their own.
Economists warn that if the shutdown continues beyond two weeks, it could slow economic growth in the fourth quarter. “We’ve seen the economy shrug off short shutdowns before,” said Kevin Hassett, a former White House economic adviser. “But this time could be different because of the scale and the threat of permanent workforce reductions.”
Looking Ahead
For now, federal workers remain in limbo — uncertain whether they will eventually return to work or receive pink slips. The administration maintains that layoffs remain a last resort, but the tone from senior officials suggests the option is being seriously considered.
Analysts believe the next few days will be crucial. If Congress fails to reach an agreement, the OMB could authorize agencies to begin issuing reduction-in-force notices, setting off a wave of legal disputes and public backlash.
“The next 72 hours are critical,” said a senior government official familiar with the planning discussions. “If there’s no movement in Congress, we’ll be forced to start making very difficult decisions.”
As the shutdown stretches into its second week, the White House faces a delicate balancing act: projecting strength in negotiations while trying to avoid blame for the potential fallout. For federal employees and the public alike, the uncertainty continues — with livelihoods hanging in the balance.
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