Federal Layoffs 'Imminent': White House Warns Firings Could Begin Within 48 Hours

(MENAFN- Live Mint) White House Budget Director Russell Vought signaled that layoffs could begin within days as the federal government shutdown stretches on.

“Some federal agencies will move to terminate workers within one to two days,” Vought told House lawmakers Wednesday, according to Bloomberg, which cited people familiar with the private meeting.

White House Press Secretary Karoline Leavitt echoed that message, telling reporters layoffs were“imminent, very soon.” She declined to specify which agencies or positions would be targeted.

Funding freeze hits New York projects

Earlier on Wednesday, the administration also halted $18 billion in federal funding earmarked for New York City infrastructure projects, including the Second Avenue Subway and the Hudson Tunnel Project. President Donald Trump had previously warned he would use a funding lapse to target“Democrat things.”

Vance attempts to reassure

Vice President JD Vance sought to downplay fears of a mass purge, saying Republicans don't want to“lay anybody off.” However, he admitted the administration could be forced into dismissals during the shutdown.

“There's necessarily going to be some pain because Senate Democrats refuse to reopen the government,” Vance told CBS News.“What we do want to do is make sure that as much of the essential services of government remain functional as possible.”

Senate search for compromise

On Capitol Hill, a group of moderate Republicans and Democrats gathered on the Senate floor, searching for a face-saving deal to end the standoff. Options discussed included a short stopgap bill while negotiations continue on the extension of expiring Affordable Care Act subsidies.

Democrats frame fight around health care

Democratic leaders presented the shutdown as a battle over health care, warning that millions of Americans face higher insurance premiums unless subsidies are extended.

Defections and divided votes

Republicans need just eight Democratic votes to move forward on a clean spending bill. On Tuesday and again on Wednesday, three Democrats broke ranks: Catherine Cortez Masto (Nevada), John Fetterman (Pennsylvania), and Angus King (Maine independent).

Meanwhile, Senator Rand Paul (R-Kentucky) was the only Republican to oppose the measure.

Vance draws line on subsidies

Vance told Fox News he was open to negotiating on health-care subsidies but only after government funding is restored.

“As the political pressure builds and as we continue to have these negotiations, you're going to see more and more Democrats come to this side,” he said.

Shutdown to stretch on

With the House out of session this week and Senate leaders preparing to send members home for Yom Kippur, the government is expected to remain closed for several more days. Lawmakers are expected to reconvene Friday and possibly work through the weekend if no agreement emerges.

Also Read | US Government shutdown: Trump signals mass layoffs - 5 key takeaways

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