The White House has warned that mass layoffs of federal workers are imminent, as the US government shutdown enters its second day with no end in sight. The standoff began after Republicans and Democrats in Congress failed to agree on a new spending plan before Wednesday’s midnight deadline.
Vice-President JD Vance, appearing alongside Press Secretary Karoline Leavitt, accused Democrats of “playing political games” and prioritizing healthcare negotiations over keeping the government open. Leavitt added that job cuts could begin within two days, warning, “Sometimes you have to do things that you don’t want to do.”
The shutdown is already hitting federal employees, with essential workers such as border agents and military personnel required to work without pay, while hundreds of thousands of non-essential staff are being placed on unpaid leave. Analysts expect this shutdown to impact roughly 40% of the federal workforce around 750,000 people making it potentially larger than the 2018 shutdown.
At the heart of the dispute is healthcare funding. Democrats are pushing for guarantees to protect healthcare benefits for low-income Americans, arguing that these provisions remain critical. Republicans, who control both chambers of Congress but lack the 60 Senate votes needed to pass a spending bill, insist that keeping the government funded should take priority.
Senate Majority Leader John Thune accused Democrats of “taking the American people hostage,” while Senate Democrat Chuck Schumer argued Republicans are trying to “bully” their way into a deal.
The shutdown also raises broader economic concerns. Past shutdowns have cost the US billions in lost output, and the current impasse threatens to deepen financial strain on workers and households. With another vote on a short-term Republican funding bill expected on Friday, there is little indication of compromise on either side.
For now, hundreds of thousands of federal workers face uncertainty caught in the middle of a partisan battle with no clear resolution in sight.
