White House National Economic Adviser Kevin Hassett talks to reporters on the West Wing driveway on the White House in Washington, D.C., U.S., August 27, 2025.
Jonathan Ernst | Reuters
White House National Economic Council Director Kevin Hassett stated Sunday that layoffs for federal staff will start if President Donald Trump decides that congressional negotiations to finish the government shutdown “are absolutely going nowhere.”
“I think that everybody’s still hopeful that when we get a fresh start at the beginning of the week, that we can get the Democrats to see that it’s just common sense to avoid layoffs like that,” Hassett stated on NCS’s “State of the Union.”
His feedback come because the government shutdown enters its fifth day, with no clear offramp in sight.
Democrats are holding their floor on their health-care calls for, pushing to incorporate a everlasting extension of enhanced premium tax credit in any government funding laws.
Republicans, nevertheless, argue that these conversations ought to occur in December — not as a part of government shutdown negotiations — escalating the standoff.
Democrats proceed to dig in on their calls for because the shutdown enters a brand new week.
The Senate again on Friday didn’t move two funding payments that will have ended the shutdown. The Republican measure would have funded the government by means of late November, whereas Democrats’ model included further health-care funding.
The resolutions beforehand failed a number of instances within the higher chamber final week.
The Trump administration has repeatedly warned of mass layoffs throughout a government shutdown, saying final week that they’d be “imminent.”
Trump additionally said that the shutdown provided him an “unprecedented opportunity” to slash the dimensions of federal companies and lay off government employees, though the administration has not but adopted by means of on its menace.
Hassett stated Sunday that Trump and Office of Management and Budget Director Russ Vought are “lining things up and getting ready to act if they have to, but hoping that they don’t.”
Still, Hassett expressed optimism that negotiations this week might resolve the deadlock.
“We think the Democrats, there’s a chance that they’ll be reasonable once they get back into town on Monday,” Hassett stated on NCS.
“And if they are, then I think there’s no reason for those layoffs.”