Trump Says a Lot of Federal Workers Could Be Laid Off If Government Shutdown Hits

President Donald Trump said on Sept. 30 that “a lot” of federal workers could lose their jobs if Democrats and Republicans fail to reach a deal on a stopgap funding bill, setting the stage for the government’s first shutdown in nearly seven years.

Speaking to reporters before leaving the White House for a meeting with military leaders in Virginia, Trump was asked how many federal workers he expected to lay off if a shutdown begins.

“Well, we may do a lot,” he replied, faulting Democrats for insisting on attaching health care provisions to the temporary spending measure.

Republicans are pushing for a clean bill to extend federal funding for seven weeks while lawmakers finish work on annual appropriations.

If the Senate does not act, government funding will expire at 12:01 a.m. on Oct. 1.

Clash Over Health Care

In his remarks to reporters, Trump reiterated his claim that Democrats want taxpayer-funded health care for illegal immigrants.

“As you know, they want to be able to take care of people that have come to our country illegally—and no system can handle that,” he said. “And so we’re totally opposed to that.”

Vice President JD Vance echoed the charge after a Sept. 29 meeting with Trump and congressional leaders, saying that Democrats “want a $1.5 trillion spending package that funded free health care for illegals.”

“That was absurd—and now they’re willing to shut down the government over it,” Vance said on X.

Democrats have responded to those statements, with House Minority Leader Hakeem Jeffries (D-N.Y.) calling the claim “a Republican talking point” and “a lie.” He said the Democrats’ focus is on preventing higher health care costs for millions of Americans.

At issue is the looming Dec. 31 expiration of expanded Affordable Care Act tax credits enacted in 2021 during the COVID-19 pandemic. Democrats want the subsidies extended immediately and are pressing Republicans to reverse Medicaid cuts enacted under the Trump-backed One Big Beautiful Bill Act. They have also sought assurances that the administration will not roll back congressionally approved health spending.

Under federal law, illegal immigrants remain excluded from Medicaid, Medicare, CHIP, and Affordable Care Act subsidies. However, 14 states and the District of Columbia fund limited coverage for certain residents who are ineligible for Medicaid due to immigration status.

Shutdown Preparations

As negotiations falter, the White House budget office has told agencies to prepare “reduction in force” (RIF) notices in case operations lapse. A memo obtained by The Epoch Times said Democrats are “signaling that they intend to … shut down the government in the coming days over a series of insane demands, including $1 trillion in new spending.”

Agencies were instructed in the memo to draft plans for cuts to employees funded by discretionary accounts, which would expire if no short-term funding bill is passed. Essential programs such as Social Security, Medicare, veterans’ benefits, military operations, law enforcement, and air traffic control would continue.

“Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown,” the memo said, adding that agencies should retain only the minimal staff needed to perform statutory functions.

Push to Downsize Federal Workforce

In January, Trump offered a deferred-resignation buyout package worth eight months’ pay and benefits to nearly all of the government’s 2.3 million employees. By September, roughly 154,000 workers had accepted, while another 100,000 had been laid off. Many of the administration’s initiatives remain tied up in court challenges.

Trump has long pledged to streamline the federal bureaucracy, signing an executive order in February for a “critical transformation” to maximize efficiency. The White House budget office has since directed agencies to plan large-scale workforce reductions.

The looming shutdown recalls the record 35-day impasse during Trump’s first term, when the government was shuttered from December 2018 to January 2019 over funding for his proposed border wall.

Joseph Lord, Emel Akan, and Melanie Sun contributed to this report.