The White House has indicated that the ongoing government shutdown is likely to result in the loss of thousands of federal jobs. Karoline Leavitt, the press secretary, confirmed the grave implications of the continued stalemate in Washington. Speaking to NewsNation's Libbey Dean on Thursday, Leavitt outlined the Trump administration's preparations for significant cuts across federal agencies.
The government shutdown, which began after a Senate vote earlier this week, has been marked by partisan division. Three senators, including Sen. John Fetterman (D-PA), Sen. Catherine Cortez Masto (D-NV), and Sen. Angus King (I-MA), broke with their party to vote with Republicans in favor of funding the government. However, the majority of the Democratic caucus opposed the measure due to the exclusion of an extension for Affordable Care Act (ACA) tax credits.
Republicans have been firm in their stance against incorporating long-term health care tax credits into the stopgap funding bill. They argue that such provisions should be part of a broader fiscal debate, not emergency legislation. This view was supported by a Congressional Budget Office (CBO) projection, which estimated that making the ACA credits permanent could increase the federal deficit by $350 billion over a decade.
Russell Vought, the director of the Office of Management and Budget (OMB), communicated to Republican lawmakers that staff reductions would commence swiftly. Agencies are expected to initiate furloughs and layoffs within days of the shutdown's onset. The federal government typically employs a tiered approach during shutdowns, distinguishing between "essential" workers, who must continue working without pay, and "non-essential" workers, who are furloughed. However, this shutdown has brought the possibility of permanent layoffs to the forefront if the deadlock endures.
Vice President J.D. Vance weighed in on the political dynamics of the situation, accusing Senate Minority Leader Chuck Schumer of succumbing to pressure from progressive members of his caucus. Vance suggested that Schumer's actions were motivated by fear of a primary challenge from Rep. Alexandria Ocasio-Cortez (D-NY). Despite the tensions, there is a glimmer of hope as moderate Democrats appear to be reconsidering their positions, possibly paving the way for a resolution.
The White House and congressional leaders have been in continuous dialogue, assessing the potential impact on the federal workforce. Unions representing federal employees are closely monitoring the situation, acknowledging the concerns of their members regarding both delayed pay and the threat of job losses. The Office of Personnel Management (OPM) is preparing guidance for agencies on how to manage the impending workforce changes.
Comparisons are being drawn to the 2018–2019 shutdown, which saw hundreds of thousands of federal employees furloughed or working without pay for 35 days. As officials have yet to predict the duration of the current shutdown, the federal workforce braces for an uncertain future.
