Karoline Leavitt Says Federal Layoffs Are ‘Imminent’ Amid Government Shutdown

White House press secretary Karoline Leavitt told the Daily Caller that federal layoffs as a result of the government shutdown are “imminent.”

The federal government shut down at midnight on Wednesday, after  Congress failed to pass a stopgap funding bill before its deadline. Prior to the shutdown, the White House floated mass layoffs of federal workers.

“Unfortunately, because the Democrats shut down the government, the president has directed his cabinet and the Office of Management and Budget is working with agencies across the board to identify where cuts can be made and we believe that layoffs are imminent,” Leavitt told the Caller.

“They are unfortunately a consequence of this government shutdown,” she added.

🚨 Karoline Leavitt sounds the alarm on “imminent” federal layoffs, WATCH:@reaganreese_ pic.twitter.com/lRKPyukQiV

— Daily Caller (@DailyCaller) October 1, 2025

OBM Director Russell Vought told GOP Congressional members on Wednesday that layoffs or reductions in force would kick off in a “day or two,” sources told NOTUS. Non-essential federal workers will be furloughed and all workers will receive back pay once the lapse is over.

The argument around the government shutdown is largely revolving around health care. Top Democrat leaders are demanding that the GOP agree to extend Biden-era Obamacare subsidies in exchange for their support. The Congressional Budget Office previously estimated that such a permanent extension would expand upon the deficit by $350 billion between 2026 and 2035.

GOP members of Congress are arguing that the body should handle government funding first before considering the tax credits.

“If the Democrats did not vote to shut down the government, we would not be talking about layoffs today,” Leavitt added in the briefing.