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Indonesia News Portal for Traders | Financial & Business Updates

6 October 2025 07:08  |

White House Threatens Layoffs, Unions Fight Back!

The Trump administration is threatening to begin mass layoffs of hundreds of thousands of US civil servants starting Monday if the budget impasse isn't resolved. Unions have immediately filed an emergency lawsuit in federal court, asking a judge to block the planned layoffs while the shutdown continues.

According to White House economic adviser Kevin Hassett, a decision on layoffs will depend on the outcome of Monday's Senate vote. This will be the fifth vote on the emergency budget bill, which remains elusive between Democrats and Republicans. Unless there are any "defections" from Democrats, the vote is expected to fail again. Trump himself stated that "layoffs are underway" and again blamed Democrats for the impasse. However, it is unclear whether any official layoffs have occurred. Unions argue that the White House's plan to lay off workers during the shutdown is unlawful because there is no legal basis for laying off workers until funding is authorized.

An estimated 750,000 federal employees have been directly impacted by the shutdown since October 1, with many being sent home without pay. The union also highlighted a memo from the Office of Management and Budget ordering all agencies to prepare layoff plans, even for previously active programs. While budget negotiations remain deadlocked, political and social tensions in Washington continue to heat up. (ads)

Source: Newsmaker.id

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