'There will start to be layoffs' if Trump decides shutdown talks have stalled, Hassett says

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White House National Economic Adviser Kevin Hassett talks to reporters connected the West Wing driveway astatine the White House successful Washington, D.C., U.S., August 27, 2025.

Jonathan Ernst | Reuters

White House National Economic Council Director Kevin Hassett said Sunday that layoffs for national employees volition statesman if President Donald Trump decides that legislature negotiations to extremity the authorities shutdown "are perfectly going nowhere."

"I deliberation that everybody's inactive hopeful that erstwhile we get a caller commencement astatine the opening of the week, that we tin get the Democrats to spot that it's conscionable communal consciousness to debar layoffs similar that," Hassett said connected CNN's "State of the Union."

His comments travel arsenic the government shutdown enters its 5th day, with nary wide offramp successful sight.

Democrats are holding their crushed connected their health-care demands, pushing to see a imperishable hold of enhanced premium taxation credits successful immoderate authorities backing legislation.

Read much CNBC authorities coverage

Republicans, however, reason that those conversations should hap successful December — not arsenic portion of authorities shutdown negotiations — escalating the standoff.

Democrats proceed to excavation successful connected their demands arsenic the shutdown enters a caller week.

The Trump medication has repeatedly warned of wide layoffs during a authorities shutdown, saying past week that they would beryllium "imminent."

Trump besides said that the shutdown offered him an "unprecedented opportunity" to slash the size of national agencies and laic disconnected authorities workers, though the medication has not yet followed done connected its threat.

Hassett said Sunday that Trump and Office of Management and Budget Director Russ Vought are "lining things up and getting acceptable to enactment if they person to, but hoping that they don't."

Still, Hassett expressed optimism that negotiations this week could resoluteness the impasse.

"We deliberation the Democrats, there's a accidental that they'll beryllium tenable erstwhile they get backmost into municipality connected Monday," Hassett said connected CNN.

"And if they are, past I deliberation there's nary crushed for those layoffs."

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