Karoline Leavitt has the Democrats SWEATING Over Imminent Federal Layoffs [WATCH]

The White House confirmed Thursday that federal layoffs are expected as a result of the government shutdown that began at midnight on Wednesday, following Congress’ failure to pass a stopgap funding bill.

White House press secretary Karoline Leavitt told the Daily Caller that layoffs were “imminent,” attributing the shutdown to Democratic leaders.

“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 said.

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

Office of Management and Budget Director Russell Vought also informed Republican members of Congress that reductions in force would begin “in a day or two,” according to sources who spoke to NOTUS.

Under the shutdown, non-essential federal employees will be placed on furlough. All federal workers are set to receive back pay once government operations resume.

The current impasse centers on health care funding, with Democratic leaders pushing to extend subsidies created under the Biden-Harris administration’s expansion of the Affordable Care Act.

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The subsidies, which lower costs for those enrolled in Obamacare, were originally set to expire. Democrats are demanding their continuation in exchange for agreeing to fund the government.

The Congressional Budget Office has projected that making the subsidies permanent would add $350 billion to the federal deficit between 2026 and 2035.

Republican lawmakers have argued that Congress should prioritize funding the government and avoid additional spending measures that would increase the national deficit.

They say Democrats are holding government operations hostage to secure a long-term extension of the health care subsidies.

Leavitt emphasized that responsibility for the shutdown rested with Democrats.

“If the Democrats did not vote to shut down the government, we would not be talking about layoffs today,” she said during the press briefing.

🚨 BREAKING: Karoline Leavitt has the Democrats SWEATING who are concerned that THOUSANDS of federal layoffs might be PERMANENT due to the shutdown 🤣pic.twitter.com/ET4bERyJFm

“Sometimes you have to do things you don’t want to do, and it’s because the Democrats have put us in this…

— Eric Daugherty (@EricLDaugh) October 1, 2025

As the shutdown continues, agencies across the federal government are preparing for the effects of limited operations.

Essential workers, such as members of the military and certain federal law enforcement personnel, will continue their duties without pay until the shutdown ends.

Meanwhile, non-essential staff will be furloughed until Congress reaches an agreement to reopen the government.

The standoff follows weeks of negotiations in which Republicans sought to pass a temporary funding bill without tying in health care provisions.

Democrats, however, insisted that any measure include the subsidy extension.

The dispute has now triggered the first major federal shutdown since President Donald Trump returned to office.

Trump has previously stated that his administration would not allow what he has described as “reckless spending policies” from the prior administration to continue.

Lawmakers have yet to signal a clear path forward on reaching a deal, leaving thousands of federal employees waiting for clarification on the status of their jobs.

With both parties holding firm, agency officials say planning is already underway for reductions in staff if the shutdown persists.

The White House said additional updates would be provided as departments finalize their plans.