Mass Layoffs Loom as Government Shutdown Drags On

Fri Oct 17 2025 08:33:10 GMT+0300 (Eastern European Summer Time)

The White House warns that major layoffs of federal workers are imminent as the government shutdown shows no signs of resolution. Both parties blame each other for the budget impasse.

With the government shut down for over a week, the White House announced that mass layoffs of federal workers are set to begin within two days. This follows failed negotiations between Republicans and Democrats on a spending plan. The shutdown risks affecting hundreds of thousands of jobs and could cost the US economy billions.

Mass layoffs of US federal workers will begin within two days, the White House says, as lawmakers trade blame over the first government shutdown in almost seven years.

The shutdown began on Wednesday after Republicans and Democrats in Congress failed to agree on a new spending plan before the midnight deadline. There is little sign that either side is willing to compromise, and a vote to end the shutdown failed just hours after it began.

The Senate has since adjourned, raising fears that the shutdown could drag on and threaten hundreds of thousands of jobs as well as risk costing the US economy billions in lost output.

At a White House briefing on Wednesday afternoon, Vice-President JD Vance made a rare appearance alongside Press Secretary Karoline Leavitt and accused the Democrats of playing political games. “If they are so worried about the effect this is having on the American people, and they should be, what they should do is reopen the government, not complain about how we respond,” he said.

Leavitt, meanwhile, stated mass job cuts would happen within two days, noting, Sometimes you have to do things that you don't want to do, implicating Democrats in the shutdown crisis.

This standoff has ignited a bitter blame game, with Senate Democrat Chuck Schumer earlier accusing Republicans of trying to coerce Democrats into accepting their funding plan.

Democrats are seeking assurances on healthcare funding before agreeing to any spending deal, whereas Republicans prefer a temporary stop-gap measure to extend government funding until mid-November.

As the shutdown persists, vital services are at risk, potentially leaving roughly 40% of federal workers - around 750,000 people - on temporary leave. Essential workers, such as military personnel, may work without pay while the status of non-essential government employees remains uncertain.

In response to the crisis, both parties have expressed differing priorities and dissatisfaction with the other's refusal to negotiate, threatening an extended period of government paralysis.