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Trump Threatens Federal Layoffs As US Government Shutdown Enters Second Day

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President Donald Trump is considering slashing “thousands” of federal jobs as part of a high-stakes strategy to pressure Democrats into ending the government shutdown, now in its second day.

White House press secretary Karoline Leavitt said Thursday that layoffs are “likely going to be in the thousands” and that agencies viewed as misaligned with the administration’s priorities are being reviewed. Trump added on social media that he would meet with budget director Russell Vought to discuss which “Democrat Agencies” could face cuts, and whether they would be temporary or permanent.

Traditionally, shutdowns see federal employees furloughed and later repaid once funding resumes. Trump’s plan, however, involves permanent reductions – a move some budget experts argue could be illegal during a shutdown.

Around 750,000 workers are expected to be furloughed, with the Congressional Budget Office estimating a daily cost of $400 million in lost compensation. Republicans argue the threat of cuts will force Democrats back to the negotiating table, but polls suggest more voters blame Trump and Republicans for the shutdown.

Treasury Secretary Scott Bessent accused Democrats of negotiating “like terrorists,” while Democrats, including Senator Elizabeth Warren, countered that the GOP has so far refused to engage.

With Congress largely idle due to the Yom Kippur holiday, the impasse looks set to continue into next week.

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