The United States is facing the imminent prospect of mass federal worker layoffs within two days, according to the White House, as lawmakers remain locked in a bitter dispute over government funding. This development comes as the nation grapples with its first government shutdown in nearly seven years.
The shutdown commenced after Republicans and Democrats in Congress failed to reach an agreement on a new spending plan before the midnight deadline. Currently, there are minimal signs that either political party is prepared to compromise, and a previous vote aimed at ending the shutdown failed shortly after its inception.
The Senate has since adjourned, fueling concerns that the shutdown could be prolonged, potentially jeopardizing the jobs of hundreds of thousands of federal employees and costing the US economy billions of dollars in lost productivity.
During a White House briefing, Vice-President JD Vance, joined by Press Secretary Karoline Leavitt, criticized the Democrats’ approach, stating, “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.“
Leavitt further emphasized the seriousness of the situation, announcing that significant job cuts were expected within the next two days. She added, “Sometimes you have to do things that you don’t want to do,“ attributing the cause of the shutdown to the Democrats’ actions.
This exchange highlights the escalating blame game between the two parties. Senate Democratic leader Chuck Schumer had previously accused the Republicans of attempting to coerce Democrats into accepting their funding proposal.
Democrats are insisting on guarantees regarding healthcare funding before agreeing to any spending deal. Conversely, Republicans advocate for a temporary measure to maintain government operations until mid-November, funded at current levels.
Democrats contend that the shutdown is a tactic to negotiate for the preservation of healthcare benefits for lower-income Americans, expressing frustration over the lack of successful negotiations with Republicans on this matter.
Senator Chris Murphy, a Democrat from Connecticut, voiced his bewilderment at the Republicans’ stance, stating, “Why are they boycotting negotiations? I’ve never witnessed this in my life. The matter is the government will open when Republicans get serious about it talking to Democrats.”
Republicans, who hold a majority in both chambers of Congress but lack the necessary 60 votes to pass a funding bill, argue that while keeping the government operational is paramount, the healthcare extensions proposed by Democrats are not a priority. Senate Majority Leader John Thune remarked, “It’s not about who wins or who loses or who gets blamed and all this. It’s about the American people. And [Democrats] have taken the American people hostage in a way that they think benefits them politically.“
Furthermore, Republicans have asserted that the healthcare extensions sought by Democrats would incur greater costs for American taxpayers and were initially implemented to address complexities arising from the COVID-19 pandemic that are no longer relevant.
Essential personnel, including border agents and the military, may continue working without immediate pay, while non-essential federal employees are placed on temporary unpaid leave. Historically, these employees have received back pay for the period of their furlough.
Analysts anticipate that the current shutdown could be more severe than the 2018 shutdown, which occurred when Congress had already approved some funding bills. It is projected that approximately 40% of federal workers, equating to around 750,000 individuals, could be put on temporary leave.
Some federal employees were furloughed on Wednesday, with the Trump administration also hinting at the possibility of permanent layoffs.
“Let’s be honest, if this thing drags on,“ Vance stated during the briefing, “we are going to have to lay people off.“
Vance also put forth the assertion, consistently denied by Democrats, that the shutdown stems from senior Democrats’ push to extend healthcare benefits to undocumented migrants. However, existing US law prevents undocumented migrants from accessing federally subsidized healthcare coverage. House Minority Leader Hakeem Jeffries clarified, “Nowhere have Democrats suggested that we’re interested in changing federal law.“
Russell Vought, the White House Budget Director, provided Republicans with a closed-door briefing on the potential implications of the impending layoffs, though public details remain scarce.
On Capitol Hill, there appeared to be little inclination towards resolving the stalemate on Wednesday.
Republican Speaker of the House Mike Johnson commented, “There’s nothing to negotiate. There’s nothing we can pull out of this bill to make it any leaner or cleaner than it is.“
An additional vote on the short-term funding bill proposed by the Republicans is scheduled for Friday.