The U.S. federal government has "stopped" from October 1 local time because the U.S. Senate failed to pass a new provisional funding bill before government funds were exhausted.
According to Reuters, Kevin Hassett, director of the White House National Economic Committee, warned on Friday that the federal government would begin massive cuts if U.S. President Trump believes that there is “no progress” at Congress level in ending the government’s “stop-up” negotiations.
Hassett said on CNN's State of the State speech on Friday that he still believes Democrats could make concessions to avoid a costly government "stop" and cuts warned by the White House's Office of Administration and Budget Director Russell Watt.
"President Trump and Russell Water are making preparations and will take immediate action if necessary, but hopefully they don't have to." Hassett said.
He added: "If the president believes there is no progress in the negotiations, he will start laying off workers. But I think there is still hope that when the new week begins, we can make Democrats understand that avoiding such layoffs is just common sense."
According to the Wall Street Journal, Trump previously said he would initiate a process to carry out far-reaching widespread layoffs in federal agencies. In a conference call with House Republicans on Wednesday, Walter said layoffs at agencies began late last week. Asked about the expected number of layoffs, White House press secretary Carolyn Levitt said: "It could be in the thousands."
The "shutdown" of the U.S. federal government began on October 1, the first day of fiscal year 2026. The move comes after Senate Democrats vetoed a short-term funding bill that would keep federal agencies running until Nov. 21.
Reuters said that since Trump met with congressional leaders last week, the two sides have not shown any signs of substantive negotiations.
Trump described the potential cuts as “Democrat layoffs” on Friday, saying to reporters, “Anyone who is fired is because of the Democratic Party.”
Chuck Schumer, the leader of the Democratic Party in the Senate, described the "shutdown" of the U.S. government as a "Republican shutdown". He said on CBS's "Face the Nation" program on the 5th that the Republican Party "refused to talk to us". Schumer said that the current deadlock can only be resolved through further negotiations between Trump and four congressional leaders.
Reuters said Democrats have insisted on their demands on health care, proposing a permanent extension of the expanded premium tax credit under the Affordable Care Act to help Americans purchase private health insurance, and asking the White House to ensure that it will not unilaterally cancel any spending in the agreement.
U.S. Senate Republican Leader John Thun said he is willing to respond to Democratic concerns, but only if they first agree to reopen the federal government.
According to reports, rank-and-file members of the Senate Democratic and Republican parties have held informal talks aimed at finding consensus on health care and other issues and reaching an agreement in order to allow the government to reopen its doors.
However, when asked whether lawmakers were close to a deal, Democratic Senator Ruben Gallego told CNN: “Not yet.”
The Congressional Budget Office previously estimated that the government's "stop" would result in about 750,000 federal employees being forced to take unpaid leave.
The Wall Street Journal commented that the government's "shutdown" may cause pain, but the pain in the initial stage is not severe enough to make either party give in.
On October 6, local time, the U.S. Senate will vote for the fifth time on the provisional appropriations bill, which has been passed in the Republican-controlled House of Representatives. At the same time, the Senate will also vote on the Democratic alternative.
But Reuters noted that neither bill is expected to receive the 60 votes needed to pass.
In the U.S. Senate, the Republican Party has a 53-47 majority, but one Republican opposes the House appropriations bill. This means that the Republican Party needs the defection support of at least eight Democrats to pass the bill. But at present, only three Democrats have expressed their support.
"We are at a deadlock now," Thun urged Democrats to resist his party leaders on Fox News's "Sunday Morning Talk about the Future" program on the 5th."They will have another chance to vote on Monday, and I hope some of them can change their minds."
"We think there is a possibility that Democrats will become reasonable when they return on Monday," Hassett said in an interview with CNN."If that's the case, then I see no reason to lay off workers."