White House warns of possible worker layoffs as US government shutdown continues

As the US federal government faces its seventh day of a funding shutdown, the White House has announced that layoffs have not yet occurred, but that the threat is becoming increasingly real if the impasse continues.

Indeed, the Senate, led by Republicans, for the fifth time rejected two proposals—a Republican one to fund the government until November 21 and a Democratic one that also includes the extension of health insurance subsidies through the Affordable Care Act, which expire at the end of the year. These subsidies currently help about 24 million Americans secure health insurance.

President Donald Trump said he is ready to reach an agreement on subsidies, while Senate Democratic Leader Chuck Schumer said there are no negotiations. The disagreements between the two sides further complicate the crisis, as the stalemate freezes about $1.7 trillion allocated for federal agencies, which accounts for a quarter of annual spending.

The threat of layoffs and union lawsuits

Trump claimed over the weekend that layoffs are already happening, but White House Press Secretary Karoline Leavitt clarified that the president was referring to employees on furlough. She added that the budget office is working to identify agencies where layoffs could follow if the shutdown continues.

Union organizations representing federal workers have already filed lawsuits, claiming that the layoffs would be illegal. Meanwhile, the administration has frozen at least $28 billion in infrastructure funds for New York, California, and Illinois, which Democrats have described as political pressure.

Possible effects on military salaries and air traffic

If the shutdown continues, next week 1.3 million service members and civilian defense workers could go without pay. In addition, a growing number of air traffic controllers are calling in sick, which could lead to delays and disruptions in air travel. Transportation Secretary Sean Duffy warned that the situation could resemble that of 2019, when a similar issue contributed to ending the previous shutdown.

This partial government shutdown is already the 15th since 1981 and is on track to become the fourth longest in US history. The longest lasted 35 days during the first Trump administration in 2018–2019.

For now, both Republicans and Democrats remain in their positions, while employees and citizens across the US suffer the consequences of the political deadlock.

SOURCE: FINANCIALEXPRESS PHOTO: PIXABAY