The White House has signaled that layoffs for federal employees could begin soon if the ongoing government shutdown continues without progress in negotiations.
White House National Economic Council Director, Kevin Hassett, revealed that the decision will depend on whether discussions between President Donald Trump and congressional leaders move forward in the coming days.
“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 said during an appearance on CNN’s State of the Union.
The shutdown, which entered its fifth day on Sunday, has already heightened tensions between Republicans and Democrats in Washington.
According to NBC News, Democrats remain firm on including a permanent extension of enhanced health-care premium tax credits in any government funding bill.
However, Republicans argue that such discussions should take place later in the year, not during the current budget impasse.
The Senate, on Friday, once again failed to pass two competing funding resolutions.
The Republican bill proposed keeping the government funded through late November, while the Democrats’ version included extra health-care funding.
The Trump administration has repeatedly cautioned that large-scale layoffs could follow if the shutdown continues.
Officials say the prolonged impasse threatens the operations of several federal agencies.
Last week, President Trump hinted that the shutdown might present an “unprecedented opportunity” to reduce the size of government and trim the federal workforce though no official steps have been taken yet.
Hassett confirmed that Trump and Office of Management and Budget Director Russ Vought were “lining things up and getting ready to act if they have to, but hoping that they don’t.”
Despite the uncertainty, Hassett expressed cautious optimism that both parties might still reach an agreement soon.
“We think the Democrats, there’s a chance that they’ll be reasonable once they get back into town on Monday,” he added. “And if they are, then I think there’s no reason for those layoffs.”
The coming week will be crucial for federal employees and agencies across the country. If no deal is reached soon.
