White House Walks Back Trump’s Layoff Claim as Government Shutdown Nears a Week

Trump told reporters that he was willing to discuss the healthcare subsidies, signaling a potential opening for negotiations.

The White House softened its stance on Monday after President Donald Trump claimed that federal workers were already being laid off as a result of the ongoing government shutdown.

Officials clarified that while no layoffs had yet occurred, the possibility loomed if the funding standoff continued into a seventh day, Congress.net reported on Monday.

The Senate once again failed to pass competing proposals to reopen the government. A Republican plan to fund operations through November 21 and a Democratic version that included healthcare subsidy extensions both fell short of the 60 votes needed.

This marked the fifth failed attempt to reach an agreement, leaving agencies without access to $1.7 trillion in operational funds—roughly a quarter of annual federal spending.

Most of the remaining budget continues to go toward mandatory spending on healthcare, retirement programs, and servicing the national debt, now standing at $37.88 trillion.

Trump and Schumer at Odds Over Negotiations

On the sixth day of the shutdown, communication between President Trump and Senate Democratic leader Chuck Schumer appeared fractured.

Trump told reporters that negotiations were ongoing, while Schumer insisted there had been “no conversations” between the two sides.

The Republican-led House of Representatives was not in session, and Speaker Mike Johnson said there were no plans to reconvene until a funding solution was found.

The deadlock has become increasingly partisan. Democrats continue to demand an extension of the Affordable Care Act subsidies, which help around 24 million Americans purchase health insurance. Republicans, historically opposed to the ACA, have resisted the measure but indicated some openness to a compromise.

Trump told reporters that he was willing to discuss the healthcare subsidies, signaling a potential opening for negotiations. However, no immediate progress followed.

White House Backtracks on Layoff Comments

The president’s comments on Sunday evening appeared to heighten anxiety among federal employees. Trump had said layoffs were occurring “right now,” sparking confusion and concern across departments.

On Monday, White House Press Secretary Karoline Leavitt clarified that Trump was referring to furloughed employees—those placed on temporary unpaid leave—since funding expired on October 1.

“The White House budget office is continuing to work with agencies on who, unfortunately, is going to have to be laid off if this shutdown continues,” Leavitt explained during a press briefing.

Federal labor unions quickly pushed back, filing lawsuits to prevent any permanent dismissals, arguing that such moves would breach labor laws that carry criminal penalties.

Funds Frozen and Pressure Mounting

The administration has already halted at least $28 billion in infrastructure funding for Democratic-led states, including New York, California, and Illinois.

These moves have drawn accusations of political retribution and have deepened divisions within Congress.

Despite growing economic and political fallout, Democratic leaders remain steadfast in rejecting what they view as hardline tactics from the White House.

Some moderate Republicans have privately voiced concern that the administration’s strategy could make it even harder to find a compromise.

The current shutdown, the 15th since 1981, is on track to become the fourth-longest in U.S. history—surpassing the six-day closure of 1995. The record 35-day shutdown of 2018-2019, also under Trump, remains the longest.

Economic and Operational Impact Widens

While essential workers such as border agents, air traffic controllers, and TSA officers remain on duty without pay, many government functions have stalled.

The Federal Register, which typically publishes more than 100 daily notices and regulatory proposals, listed only four entries on Monday morning.

Air travel is also beginning to feel the strain. Transportation Secretary Sean Duffy warned that an increase in air traffic controllers calling in sick could lead to widespread flight delays.

This pattern echoes the 2019 shutdown, which ended after mass absences from airport staff disrupted national travel.

A more immediate concern may come next week, when around 1.3 million military personnel are expected to miss their first paychecks since the shutdown began.

Political Outlook and Uncertain Path Forward

Republicans currently hold a 53–47 Senate majority but still require at least eight Democratic votes to advance any major spending bill, given Senator Rand Paul’s opposition to the GOP’s temporary funding plan.

Only two Democrats and one independent have broken ranks so far.

Many Democrats insist that healthcare subsidy extensions must be settled before open enrollment begins on November 1.

Speaker Johnson, speaking on conservative radio host Hugh Hewitt’s show, acknowledged the challenge ahead.

“We’ve got probably 100 ideas for reforms on the table, but I can’t snap my fingers this afternoon and make that happen,” he said.

For now, the government remains in a holding pattern, with mounting frustration across Washington and the country.