Shutdown Deepens: Trump Warns of Mass Layoffs as ACA Subsidies Stymie Deal

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Shutdown Deepens: Trump Warns of Mass Layoffs as ACA Subsidies Stymie Deal

The partial US government shutdown, which began on October 1, continues amid a deadlock between the Trump administration and congressional Democrats over a funding bill. The White House has escalated the conflict by warning of mass layoffs for federal workers if negotiations stall, a move President Trump has blamed on Democrats. Democrats, meanwhile, insist that progress can only be made through further talks and have tied government funding to the extension of Affordable Care Act (Obamacare) subsidies. With both sides refusing to budge, and a fifth Senate vote on a short-term bill expected to fail, a resolution is nowhere in sight.

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The Trump administration has issued a severe warning: mass layoffs of federal workers will begin if negotiations to end the ongoing partial government shutdown—which started on October 1—are deemed “absolutely going nowhere.” While National Economic Council Director Kevin Hassett expressed hope for a resolution, he confirmed the administration is preparing to act. President Trump intensified the political blame, labeling the potential firings as “Democrat layoffs.” Senate Democrats, led by Chuck Schumer, responded by demanding resumed talks and refusing to back down on their demands for Affordable Care Act subsidies.

Government Shutdown Enters Day Five as Layoff Threats Loom

The partial government shutdown has entered its fifth day with White House and congressional leaders deeply divided over a federal funding bill. A senior White House official warned Sunday that the Trump administration is prepared to initiate mass layoffs of federal employees if negotiations with Democrats prove fruitless. The impasse centers on a failed Senate attempt to pass a short-term funding measure, with Democrats demanding a deal that includes a resolution to healthcare questions regarding the ACA, a demand Republicans have resisted. Both Senate Majority Leader John Thune and Democratic Leader Chuck Schumer signaled a willingness to negotiate, but both sides remain firm on their prerequisites for ending the shutdown.

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