Government Shutdown: Looming Layoffs and Ongoing Political Standoff

Mon Oct 20 2025 23:00:41 GMT+0300 (Eastern European Summer Time)

The U.S. government shutdown has left hundreds of thousands of federal workers facing layoffs as Congress fails to reach a new spending agreement, intensifying the blame game between Democrats and Republicans.

The White House warns that mass layoffs of federal workers are imminent as a government shutdown drags on, with neither party showing willingness to compromise. The shutdown, which is now the first in nearly seven years, stems from disagreements over a new spending plan. Vice-President JD Vance and Press Secretary Karoline Leavitt accuse Democrats of stalling negotiations while Democrats push for guarantees on healthcare funding.

Mass layoffs of US federal workers will begin within two days, the White House says, as lawmakers trade blame over the first government shutdown in almost seven years.

The shutdown began on Wednesday after Republicans and Democrats in Congress failed to agree on a new spending plan before the midnight deadline.

There is little sign that either side is willing to compromise, and a vote to end the shutdown failed just hours after it began.

The Senate has since adjourned, raising fears that the shutdown could drag on and threaten hundreds of thousands of jobs as well as risk costing the US economy billions in lost output.

At a White House briefing on Wednesday afternoon, Vice-President JD Vance accused the Democrats of playing political games. “If they are so worried about the effect this is having on the American people, they should reopen the government, not complain,” he stated.

Republicans control both chambers of Congress but lack the 60 votes needed to pass a funding bill. They hope to keep the government running until mid-November without addressing healthcare funding. Essential workers are still due to work, but many non-essential employees are already on unpaid leave.

Analysts suggest this shutdown could have a broader impact than previous ones, potentially affecting roughly 750,000 federal workers. Meanwhile, both sides appear deeply entrenched in their positions with no clear path to resolution in sight.