White House National Economic Adviser Kevin Hassett talks to reporters on the West Wing driveway at the White House in Washington, D.C., U.S., August 27, 2025.
Jonathan Ernst | ReutersWhite House National Economic Council Director Kevin Hassett said Sunday that layoffs for federal employees will begin if President Donald Trump decides that congressional negotiations to end 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 that," Hassett said on CNN's "State of the Union."His s come as the government shutdown enters its fifth day, with no offramp in sight.Democrats are holding their ground on their health-care demands, pushing to include a permanent extension of enhanced premium tax credits in any government funding legislation.Read more CNBC coverage'There will start to be layoffs' if Trump decides shutdown talks have stalled, Hassett saysTreasury weighs minting $1 coin with Trump's face for U.S.
250th anniversaryGovernment shutdown: Senate funding measures fail again as deadlock continuesWatch: Trump details plan to end Israel war with Hamas in GazaDemocrats refuse to cave on health care before Trump government shutdown meetingTrump bashes Zohran Mamdani after Eric Adams drops out of New York mayor's raceTrump 'Truths' tariffs on films and furniture raise questions on detailsTrump threatens mass firings if shutdown isn't averted: NBC NewsRepublicans say Obamacare tax credit fight can wait until after shutdown avertedJD Vance on Tiktok: U.S.
'successfully separated' TikTok from China's ByteDanceEric Adams drops out of New York City mayoral racePresident Trump posts cartoon image depicting him firing Fed Chief PowellRepublicans, however, argue that those conversations should happen in December — not as part of government shutdown negotiations — escalating the standoff.Democrats continue to dig in on their demands as the shutdown enters a new week.The Trump administration has repeatedly warned of mass layoffs during a government shutdown, saying last week that they would be "imminent."Trump also said that the shutdown offered him an "unprecedented opportunity" to slash the size of federal agencies and lay off government workers, although the administration has not yet ed through on its threat.Hassett said 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 could resolve the impasse."We think the Democrats, there's a chance that they'll be reasonable once they get back into town on Monday," Hassett said on CNN."And if they are, then I think there's no reason for those layoffs."