White House Warns of Job Losses Amid Potential Government Shutdown

White House Press Secretary Caroline Leavitt mentioned that “thousands of federal workers” could face layoffs due to the impending government shutdown.

On Wednesday, Leavitt indicated that job losses would be “immediate” and expected in the near future. Following her statements, a spokesman for Newsnation’s Libby Dean confirmed the expectation of widespread job losses.

“It’s probably thousands. That’s a significant question. Here, the White House team needs to address this again, which is unfortunate,” Leavitt noted. “These discussions and meetings might have been avoided if Democrats had opted to maintain government operations.”

Pennsylvania Democrat John Fetterman and Nevada’s Katherine Cortez Masto were among the few Democrats who sought to keep the government open, alongside independent Sen. Angus King from Maine. The Republican continuing resolution did not propose extending tax credits under the Affordable Care Act, prompting most Democrats to support the government shutdown.

Prior estimates from the Congressional Budget Office suggested that a permanent extension of these tax credits could increase the deficit by $350 billion from 2026 to 2035. Republicans argued that addressing government funding should take precedence over tax credit discussions.

In addition, Russell Vought from the Office of Business and Budget warned Republican Congress members that layoffs and budget cuts could begin within “a day or two.”

Vice President JD Vance expressed concern that Senate Minority Leader Chuck Schumer is anxious about losing his position to New York State Rep. Alexandria Ocasio-Cortez, suggesting that Schumer might be yielding to the more progressive elements of his party. He also noted that the shutdown may not be long-lasting due to the influence of moderate Democrats.