[Photo Credit: By BruceSchaff - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=153862167]

White House Warns of ‘Thousands’ of Layoffs as Democrats Hold Line on Shutdown

The White House reportedly said Thursday that “thousands” of federal employees will lose their jobs in the coming days, casualties of a government shutdown that Republicans argue was forced by Democratic insistence on tying unrelated spending to health care subsidies.

Press Secretary Karoline Leavitt told NewsNation’s Libbey Dean that layoffs were imminent and directly attributed them to Democratic obstruction. “Look, it’s likely going to be in the thousands. It’s a very good question, and that’s something that the Office of Management and Budget and the entire team at the White House here, again, is unfortunately having to work on today,” Leavitt said. “These discussions and these conversations, these meetings would not be happening if the Democrats had voted to keep the government open.

Only three members of the Democratic caucus — Senators John Fetterman of Pennsylvania, Catherine Cortez Masto of Nevada, and independent Angus King of Maine — broke with party leadership to support keeping the government open.

The remainder of Democrats voted against the stopgap resolution because it did not include an extension of Affordable Care Act tax credits.

Republicans say those tax credits, while politically popular among progressives, come with a staggering price tag.

The nonpartisan Congressional Budget Office has estimated that permanently extending them would add $350 billion to the deficit between 2026 and 2035.

For Republicans, that made the decision clear: fund the government first, and deal with the debate over tax credits later.

Russell Vought, director of the Office of Management and Budget, underscored the timeline in private briefings to Republican lawmakers, saying layoffs and reductions would begin within “a day or two.”

The Trump administration, which has made fiscal discipline a hallmark of its second term, has said the shutdown is not its preferred outcome — but has also framed it as an opportunity to examine the size and scope of government.

President Trump himself has suggested that the disruption could be used to permanently restructure agencies he has long described as bloated.

Vice President J.D. Vance placed the blame squarely on Senate Democratic leader Chuck Schumer, saying he had allowed the party’s far-left flank to dictate strategy. “Schumer is caving to the far-left wing of his party because he is terrified of losing his seat to Democratic New York Rep. Alexandria Ocasio-Cortez,” Vance said Wednesday.

While Vance predicted the shutdown would not last long, he argued that Democrats had overplayed their hand. “Some moderate Democrats are coming around,” he added, pointing to the handful of defections in the Senate.

The White House, meanwhile, is preparing for an initial wave of pink slips across multiple agencies, bracing for what Leavitt described as “imminent” job losses. “It’s likely going to be in the thousands,” she said, emphasizing that the layoffs were a direct consequence of Democratic votes.

For Republicans, the standoff has highlighted a broader question: whether Washington should continue expanding entitlements at the expense of fiscal stability, or return to the basics of funding government without partisan conditions.

[READ MORE: Madison Cawthorn Launches Comeback Bid in Florida After Kirk Assassination]

About Post Author