Mass layoffs of U.S. federal workers are imminent as the government shutdown enters its second day, with Congress gridlocked over a new spending bill.
Lawmakers are exchanging blame, and the White House has warned that pink slips may arrive within 48 hours, further deepening concerns about both job security and the broader economy.
The shutdown began late Wednesday after Republicans and Democrats in Congress disagreed on a budget before the midnight deadline.
A subsequent vote to end the crisis failed hours later, leading to a Senate adjournment and little sign of a swift compromise.
Government services have started to close, and federal employees now face growing uncertainty in the days ahead.
Why did the government shut down again?
A significant point of contention remains the funding of healthcare for low-income Americans. Democrats have demanded guarantees on these benefits before agreeing to any deal.
Republicans are pressing for a stopgap measure to keep the government running at current operational levels until mid-November.
Deadlock over these issues led to the first government shutdown since 2018, with neither party showing much flexibility.
Democratic leaders say their strategy is to negotiate for essential social safety nets and protect vulnerable Americans, while Republicans argue that procedural tactics have turned the situation into a partisan standoff.
Senator Chris Murphy described the GOP's boycott of negotiations as unprecedented and blamed them for prolonging the crisis.
Did you know?
The federal government shutdowns have ranged from a few hours to over a month, with the 2018-2019 standoff lasting a record 35 days.
What does the White House say about layoffs?
At a White House briefing, Vice President JD Vance and Press Secretary Karoline Leavitt signaled that mass layoffs could begin within two days. Leavitt cited difficult decisions and blamed Democrats for setting the current gridlock in motion.
Vance stated bluntly that if the shutdown continues, the administration will “have to lay people off.” Budget chief Russell Vought briefed Republican leaders on the mechanics of looming job cuts, but public details remain limited.
Some federal workers were already furloughed on Wednesday, and the administration reiterated that permanent layoffs could follow if lawmakers cannot resolve the impasse soon.
How are politicians responding to the crisis?
Both major parties have ramped up rhetoric and blame as the shutdown continues. Senate Majority Leader John Thune accused Democrats of holding the government hostage for political gain, while Democratic leaders pointed to the GOP's reluctance to fund healthcare as the core reason for the shutdown.
Speaker Mike Johnson said Republicans would propose another short-term funding bill on Friday, but did not indicate a new path toward resolution.
Reports from Capitol Hill indicate a limited appetite for negotiation, with entrenched positions threatening to prolong not only job insecurity but also the negative impacts on government operations and public services.
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Who will be impacted most by the shutdown?
Essential workers, including border agents and military personnel, must continue working without immediate pay. Government staff deemed non-essential are temporarily furloughed, going unpaid for the duration of the shutdown.
Previous shutdowns resulted in retroactive pay being granted, but the Trump administration has signaled that permanent terminations may be possible this time.
Analysts estimate that over 40% of federal workers, nearly 750,000 people, will face temporary leave. The broader community will also feel ripple effects, from closed parks and travel disruptions to uncertainty in key government programs.
How big could the shutdown’s economic toll be?
Economists predict that this shutdown could be more severe than the 2018 event, given its scale and the ongoing congressional deadlock. As government spending halts, lost productivity and delayed services could result in billions of dollars in costs.
Analysts warn that the longer the shutdown lasts, the higher those costs and the more difficult any recovery will be, especially if permanent layoffs begin.
As the shutdown’s effects expand, pressure increases for Congress and the administration to reach a workable compromise.
Citizens, businesses, and government employees across the country are watching for movement, even as negotiations stall and calls for bipartisanship grow more urgent.
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