In a stark warning, President Donald Trump has signaled that massive layoffs of federal workers could be on the horizon if negotiations to end the partial government shutdown remain stalled, as the Daily Mail reports.

The ongoing deadlock, which began on Oct. 1, centers on disputes over healthcare tax credits and government spending assurances, leaving federal workers at risk of job cuts as talks between Trump and Congressional Democrats falter.

The partial government shutdown started at the beginning of the 2026 federal fiscal year after the Senate failed to pass a stop-gap funding bill to keep operations running until Nov. 21.

Shutdown enters another day

In its fifth day as of Sunday, the shutdown stems from a disagreement over a Republican-approved spending bill, which Democrats have rejected due to their demand for a permanent extension of tax credits tied to the Affordable Care Act.

These credits assist Americans in buying private health insurance, but Republicans argue that discussions on extending them should wait until December, when they are set to expire.

Additionally, Democrats are seeking guarantees that the White House will not unilaterally alter previously agreed-upon spending if a deal is reached.

Threat of layoffs looms

Amid the impasse, Trump has raised the possibility of significant federal layoffs, describing them as a last resort if talks with Democrats show no progress.

White House National Economic Council Director Kevin Hassett told CNN, “President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don't.”

Hassett added, “If the president decides that the negotiations are absolutely going nowhere, then there will start to be layoffs.”

Political blame game intensifies

Trump has pinned the blame for potential job cuts on Democrats, stating, “Anybody laid off, that’s because of the Democrats.”

Meanwhile, Senate Minority Leader Chuck Schumer told CBS, “They've refused to talk with us,” emphasizing that resolving the standoff requires more dialogue between Trump and the four key congressional leaders, including Schumer, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune, and House Speaker Mike Johnson.

Senate Majority Leader John Thune underscored the urgency, saying, “It’s open up the government or else.”

Negotiations stall despite continued talks

Informal discussions between Democrats and Republicans continue, focusing on reopening the government by addressing healthcare concerns and the stalled funding bill, though progress remains elusive.

Democrat Sen. Ruben Gallego, when asked by CNN if a deal was near, responded simply, “At this point, no.”

The Senate is scheduled to vote again on Monday on the stop-gap funding bill for the fifth time, having already failed four times, including a vote on Friday, while a Democrat-approved alternative bill also lacks sufficient support to pass in the chamber.