The Trump administration is preparing for mass layoffs of federal employees if talks with congressional Democrats fail to resolve the ongoing partial government shutdown, senior White House officials said on Sunday.

As the shutdown entered its fifth day, White House National Economic Council Director Kevin Hassett told CNN’s State of the Union that the administration is “lining things up and getting ready to act if they have to.” He added that there remains hope that Democrats would back down to avert a costly shutdown and potential layoffs of thousands of federal workers.

“President Trump and Russ Vought are lining things up and getting ready to act if they have to, but hoping that they don’t,” Hassett said.

Later, when asked by reporters when layoffs would begin, President Donald Trump replied, “It’s taking place right now,” without elaborating further.

The Office of Management and Budget (OMB), central to Trump’s push to reduce the size of the federal workforce, has not yet responded to requests for comment.

No progress in talks between White House and Congress

Despite growing economic and political pressure, no tangible progress has been made between the White House and congressional leaders since their last meeting. The shutdown began on October 1, marking the start of the federal fiscal year 2026, after Senate Democrats rejected a short-term funding bill intended to keep agencies open through November 21.

“They’ve refused to talk with us,” Senate Democratic leader Chuck Schumer said on CBS’ Face the Nation, stressing that the impasse could only be resolved through renewed talks between Trump and top congressional leaders.

Democrats have demanded a permanent extension of enhanced premium tax credits under the Affordable Care Act (ACA) and assurances that the White House will not unilaterally cut agreed spending.

Meanwhile, Senate Majority Leader John Thune said he is open to addressing Democratic concerns but insisted that the government must first be reopened before further negotiations take place.

Healthcare reform at the centre of standoff

Trump also addressed the healthcare issue, asserting that Republicans were keen to “fix” the Affordable Care Act, also known as Obamacare, which he called “a disaster for the people.”

“We want to fix it so it works. Obamacare has been a disaster, so we want to have it fixed so it works,” the president said.

Senate vote scheduled for Monday

Both Democrats and Republicans in the Senate have been holding informal discussions to explore potential compromises on healthcare and other spending priorities, but so far, there has been no breakthrough.

Democratic Senator Ruben Gallego told CNN that “at this point, no” deal is in sight.

The Senate is scheduled to vote on Monday for the fifth time on two competing funding measures — the Republican-backed House bill and a Democratic alternative. Neither is expected to reach the 60-vote threshold required to advance.

With a 53-47 Republican majority and at least one Republican opposing the House bill, GOP leaders need the support of eight Democrats, but only three have crossed the aisle so far.

“It’s open up the government or else,” Thune said on Fox News’ Sunday Morning Futures. “That’s really the choice that’s in front of them right now.”