White House economic adviser Kevin Hassett said the Trump administration will begin mass layoffs of federal workers if talks with congressional Democrats to end the partial government shutdown “go absolutely nowhere.”
As the shutdown entered its fifth day, Hassett told CNN’s State of the Union he still hoped Democrats would relent, avoiding the costly shutdown and layoffs threatened by budget director Russell Vought.
“President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don’t,” said Hassett. “If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs. But I think that everybody is 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.”
No progress has been made since President Trump met with congressional leaders last week. The shutdown, which began Oct. 1 at the start of fiscal 2026, followed Senate Democrats’ rejection of a stopgap bill to fund the government through Nov. 21.
Democrats are pushing for a permanent extension of enhanced ACA premium tax credits and written guarantees that the White House won’t unilaterally cut spending included in any agreement.
“What we’ve seen is negotiation through deep fake videos, the House canceling votes and, of course, President Trump spending yesterday on the golf course. That’s not responsible behavior,” House Democratic leader Hakeem Jeffries told NBC’s “Meet the Press.”
National Economic Council Director Kevin Hassett on the Democrat Shutdown: “Senate Democrats are marching in unison towards destruction.” pic.twitter.com/NndbvrGaPJ
— Rapid Response 47 (@RapidResponse47) October 5, 2025
