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US government shutdown triggers imminent layoffs, White House warns

Published on: October 2, 2025 6:52 AM

The White House has warned that mass layoffs of federal workers are imminent due to the ongoing US government shutdown. The shutdown began Wednesday after Republicans and Democrats failed to agree on a new spending plan before the deadline. With no compromise in sight, fears are growing about lost jobs and billions in economic damage.

READ MORE:Trump warns: Attack on Qatar is an attack on U.S. security

Vice-President JD Vance accused Democrats of stalling and said they must agree to reopen the government immediately. Press Secretary Karoline Leavitt added that layoffs could begin within two days. Democrats, however, argue they are pushing for healthcare protections for low-income Americans. They accuse Republicans of refusing to negotiate in good faith.

Republicans control both chambers of Congress but lack the 60 votes needed in the Senate. They want a temporary funding extension until mid-November, while Democrats demand guarantees on healthcare funding. Senate Majority Leader John Thune accused Democrats of “taking the American people hostage,” while Senator Chris Murphy said Republicans were boycotting talks.

The US government shutdown has already forced some workers to go without pay. About 40% of federal employees, nearly 750,000 people, could be furloughed. Essential staff like military and border agents must keep working unpaid, but non-essential workers will face temporary leave. Analysts warn this shutdown could exceed the impact of the 2018 shutdown.

READ MORE:Gaza aid Flotilla faces naval confrontation near blockade

The standoff shows no clear resolution. Republicans plan another vote on Friday, but Democrats remain firm on healthcare demands. Until a deal is reached, the US government shutdown threatens jobs, public services, and economic stability. With both parties entrenched, uncertainty continues for federal workers and millions of Americans.

Filed Under: Top Stories, World Tagged With: economic damage, Latest, The White House, US government shutdown, US government shutdown triggers imminent layoffs, White House warns

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