White House National Economic Advisor Kevin Hassett speaks with reporters at West Wing Driveway in the White House in Washington, D.C. on August 27, 2025.
Jonathan Ernst | Reuters
Kevin Hassett, director of the White House National Economic Council, said Sunday that federal employees layoffs would begin if President Donald Trump decides that Congressional negotiations to end the government’s closures “are absolutely nowhere.”
“I think everyone is still hoping that when we get a fresh start at the beginning of the week, we can show Democrats that it’s common sense to avoid such layoffs,” Hassett told CNN’s “The State of the Union.”
His comments are that once the government shutdown enters day 5, there will be no clear off-ramp visible.
Democrats are pushing to include permanent extensions to premium tax credits that are based on healthcare demands and strengthened by government funding laws.
But Republicans argue that these conversations should take place in December, not part of the government’s closure talks.
As the shutdown enters a new week, Democrats continue to dig into their demands.
Again, the Senate failed to pass two funding bills that would end the shutdown. The Republican action funded the government until late November, but the Democrat version included additional healthcare funding.
The solution failed multiple times previously in the upper chamber last week.
The Trump administration repeatedly warned of massive layoffs during the government shutdown, saying they were “immediate” last week.
Trump also said the closure provided him with a “unprecedented opportunity” to cut the size of federal agencies and fire government workers, but the administration has not yet followed the threat.
Hassett said on Sunday that Trump and executive and budget director Russ Vault’s office “we’re putting things side by side and ready to act if they have to do it, but we hope they don’t.”
Still, Hassett expressed optimism that this week’s negotiations could resolve the impasse.
“I think Democrats could make sense when they return to town on Monday,” Hassett told CNN.
“And if that’s the case, I don’t think there’s a reason for those layoffs.”
