The White House has warned that mass layoffs of federal workers could begin within two days as the United States faces its first government shutdown in nearly seven years.

The standoff between Republicans and Democrats shows little sign of resolution, raising fears of deep economic and human consequences.

The shutdown began Wednesday after lawmakers failed to pass a spending bill before the midnight deadline. A vote to end the impasse collapsed within hours, and the Senate adjourned without a path forward.

Both parties have traded blame, with Democrats demanding guarantees on healthcare funding for lower-income Americans and Republicans insisting on a stop-gap measure to keep government operations running until mid-November.

White House: Layoffs 'Imminent'

At a White House briefing, Vice President JD Vance and Press Secretary Karoline Leavitt accused Democrats of political brinkmanship. Vance warned that layoffs were unavoidable if the shutdown continues.

“Let’s be honest, if this thing drags on, we are going to have to lay people off,” he said. Leavitt added that the first cuts could come within 48 hours, saying: “Sometimes you have to do things that you don’t want to do. Democrats put us in this position.”

Analysts expect the shutdown to affect roughly 40% of federal workers — around 750,000 people — who may be placed on unpaid leave. Essential staff, such as military personnel and border agents, could be forced to work without pay, while services like national parks and travel operations face major disruptions.

Some workers were furloughed on Wednesday, but the Trump administration has also signaled the possibility of permanent layoffs if the deadlock persists.

Democrats push back

Democrats have rejected Republican claims that the shutdown is tied to demands for healthcare benefits for undocumented migrants, calling the accusation false. House Minority Leader Hakeem Jeffries said: “Nowhere have Democrats suggested that we’re interested in changing federal law.”

Senate Democrat Chuck Schumer accused Republicans of trying to “bully” opponents into accepting their plan, while Senator Chris Murphy called on Republicans to engage in “serious negotiations.”

Republicans, who control both chambers but lack the 60 Senate votes needed to pass the bill, argue that keeping the government open must come before healthcare debates. Senate Majority Leader John Thune said Democrats were “taking the American people hostage.”

House Speaker Mike Johnson doubled down, saying: “There’s nothing to negotiate. There’s nothing we can pull out of this bill to make it any leaner or cleaner than it is.”