Crystal Dike
The White House has sounded the alarm over looming job losses as the U.S. government shutdown entered its second day on Wednesday, with no progress in negotiations between Republicans and Democrats.
The shutdown, which began on October 1 after lawmakers failed to agree on a new spending plan, is the country’s first in nearly seven years. Already, thousands of federal workers have been forced onto unpaid leave, and officials warn that as many as 750,000 employees—nearly 40% of the federal workforce—could be furloughed. Essential staff such as border agents and military personnel are expected to continue working but without pay.
At a tense White House briefing, Vice-President JD Vance stood alongside Press Secretary Karoline Leavitt, who cautioned that permanent layoffs could soon follow. “Two days, imminent, very soon,” she said, placing blame squarely on Democrats for the impasse. “Sometimes you have to do things that you don’t want to do,” she added.
President Donald Trump, meanwhile, has urged Republicans to treat the government shutdown as an “opportunity” to cut government programs permanently. Writing on his Truth Social account, he called for Republicans to “clear out dead wood, waste, and fraud.” His administration has already confirmed it is withholding $18 billion earmarked for infrastructure projects in New York City, home to senior Democratic leaders in Congress.
The political standoff has deepened. Senate Majority Leader Chuck Schumer accused Republicans of trying to “bully” Democrats into submission, while Democrats held firm on their demand for healthcare funding guarantees for lower-income Americans.
Republicans insist on a stopgap measure to fund government at current levels until mid-November, rejecting what they call “costly and unnecessary” healthcare extensions. Some GOP leaders have even accused Democrats of pushing benefits for undocumented migrants—a charge House Minority Leader Hakeem Jeffries dismissed as “false and misleading,” citing federal law that bars such access.
With Congress adjourned, the next test will come Friday, October 3, when a Republican-backed short-term funding bill is scheduled for a vote. Economists warn the longer the U.S. government shutdown continues, the more it will cost the nation in lost output, potentially running into billions of dollars.
On Capitol Hill, signs of compromise remained slim. “There’s nothing to negotiate. There’s nothing we can pull out of this bill to make it any leaner or cleaner than it is,” House Speaker Mike Johnson declared.
Vice-President Vance struck a grim note: “Let’s be honest, if this thing drags on, we are going to have to lay people off,” he said, underscoring the uncertainty facing hundreds of thousands of federal workers as the U.S Government shutdown crisis deepens.