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Home » White House Warns of Mass Federal Layoffs as US Government Shutdown Enters Third Day

White House Warns of Mass Federal Layoffs as US Government Shutdown Enters Third Day

Ananya Pattnaik by Ananya Pattnaik
October 3, 2025
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The White House on Thursday warned that “thousands” of federal employees could face layoffs if the ongoing government shutdown continues, intensifying the standoff between Republicans and Democrats in Washington.


White House press secretary Karoline Leavitt told reporters that the administration, alongside the Office of Management and Budget (OMB), is preparing contingency plans. These plans aim to determine which departments may be hit hardest. “It’s likely going to be in the thousands,” Leavitt said. She added that the shutdown had already triggered internal reviews of possible program cuts.

Leavitt placed the blame squarely on Democrats, accusing them of “playing politics” over disagreements on healthcare provisions for undocumented immigrants. “These conversations would not be happening if Democrats had voted to keep the government open,” she said. She further argued that Medicare benefits should not be extended to “immigrants without papers.” She claimed the administration was diverting resources from America’s “most vulnerable citizens.”

President Donald Trump, meanwhile, appeared unfazed by the impasse. In a post on social media, he called the shutdown an “unprecedented opportunity” to restructure the federal government. “They are not ignorant people, so maybe this is their way of wanting to, quietly and quickly, MAKE AMERICA GREAT AGAIN!” Trump wrote. He also said he would meet OMB Director Russ Vought to review which programs could be cut.

According to CBS News, the administration has already taken steps to pause or cancel billions of dollars in federal funding. These funds are earmarked for projects in Democratic-led states.

The federal government entered a partial shutdown at midnight Wednesday, after lawmakers failed to pass a budget extension. Essential services remain operational. However, several agencies are facing disruption, with workers left in limbo.

Both parties are refusing to take responsibility. Republicans insist Democrats should agree to a seven-week stopgap measure to keep the government running. Democrats, however, argue that they will not support temporary funding without significant concessions on policy issues, CNN reported.

As the stalemate drags into a third day, the risk of prolonged disruption and widespread layoffs looms large.

Tags: federal layoffslatest newsUS government shutdownWhite House
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