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The US government shutdown entered day 6 on Monday as negotiations between President Donald Trump’s administration and congressional Democrats remained deadlocked.

The political stalemate has halted non-essential government services, delayed federal paychecks, and sparked growing concern over potential layoffs, which the White House says could begin soon if no agreement is reached.

White House escalates pressure as layoff threats loom

White House Press Secretary Karoline Leavitt confirmed Monday that the administration is preparing contingency plans for federal worker layoffs if the shutdown persists.

She said agency heads are coordinating with the Office of Management and Budget, though no timeline was provided.

“If this shutdown continues, layoffs are going to be an unfortunate consequence,” Leavitt told reporters, while declining to say when they might begin.

President Trump, speaking from the White House, blamed Democrats for the stalemate, calling any potential job cuts “Democrat layoffs.”

Unlike previous shutdowns, in which workers were temporarily furloughed, the Trump administration has signaled a willingness to terminate positions permanently as part of broader efforts to downsize the federal workforce.

“These conversations about layoffs would not be happening in the White House today if not for the Democrat shutdown,” Leavitt told CNN.

Some Republicans, however, have privately warned that widespread layoffs could prove politically damaging, particularly in states with large numbers of federal employees.

The standoff has already rattled investor sentiment, with concerns that prolonged disruption could weigh on fourth-quarter growth.

Senate votes stall as healthcare becomes flashpoint

The Senate was expected to vote late Monday for a fifth time on a stopgap funding bill to reopen the government through November 21.

The measure requires 60 votes to pass, meaning Republican leaders need support from several Democrats.

Democrats have refused to back the bill unless it includes provisions to extend Affordable Care Act (ACA) subsidies expiring at the end of 2025, as well as rollbacks to Medicaid cuts passed in Trump’s second-term spending law.

Republicans argue that healthcare issues should be addressed separately once the government is reopened.

Kevin Hassett, Trump’s top economic adviser, said the administration is monitoring Senate negotiations closely and warned that “sharp measures” would follow if talks fail.

Some moderate lawmakers, including Senators Mike Rounds and Susan Collins, have attempted to broker compromise language to guarantee future votes on healthcare, but those efforts collapsed late last week.

House Speaker Mike Johnson has refused to reconvene the House until Democrats agree to pass the Senate’s version of the stopgap, prompting criticism from Minority Leader Hakeem Jeffries, who accused Republicans of “refusing to do their jobs.”

Economic fallout and public frustration grow

The shutdown has shuttered departments including Education, Housing, Commerce, and Labor, while essential agencies like Defense, Treasury, and Homeland Security remain partially operational.

If no resolution is reached, hundreds of thousands of public workers will miss paychecks starting October 10, and military personnel are expected to go unpaid from October 15.

According to a CBS News poll released Sunday, a narrow majority of Americans blame Republicans for the gridlock, though both parties face rising public frustration.

Democrats warn that, without renewed ACA subsidies, 24 million Americans could see insurance premiums double and four million could lose coverage entirely next year.

Republicans, meanwhile, maintain that the subsidies are unrelated to government funding and can be debated later in the year.

The shutdown marks another escalation in Trump’s second term, during which federal employment has already been reduced by over 200,000 jobs under the Department of Government Efficiency, led by Elon Musk.

As talks continue to stall, markets and workers alike are bracing for a prolonged impasse — one that underscores deep political divisions in Washington and the economic costs of continued paralysis.

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