US President Donald Trump signaled Thursday that he is prepared to move forward with mass layoffs of federal employees, escalating a budget standoff that has left the government partially shuttered for a second consecutive day.

Writing on Truth Social, Trump said he would meet with budget chief Russell Vought to determine "which of the many Democrat Agencies, most of which are a political SCAM," should face downsizing, and whether those cuts would be "temporary or permanent."

"We can do things during the shutdown that are irreversible, that are bad for them and irreversible by them," Trump said, implying that job cuts could be used to ratchet up political pressure on Democrats to accept his terms.

According to reports, Vought told House Republicans that a large portion of furloughed employees could face permanent termination, echoing White House spokesperson Karoline Leavitt's warning that "firings were imminent" and could number "in the thousands."

The shutdown has already forced around 750,000 federal workers off the job without pay, disrupting public services from education and housing to energy and transport. The Trump administration insists the move is strategic, an effort to compel Democrats to back the Republican funding resolution currently stalled in the Senate.

The Real Battle: Health Care Subsidies and Federal Power

Behind the impasse lies a deeper policy clash. Democrats are demanding that any funding package include an extension of Affordable Care Act (ACA) subsidies, which are due to expire this month. Without renewal, millions of lower- and middle-income Americans could face sharp premium hikes or loss of coverage during open enrollment.

Republicans, led by Trump and Vought, have rejected the condition outright, calling it a "partisan rider" unrelated to keeping the government running. They argue that Democrats are "holding funding hostage" for a policy battle that should be debated separately.

But the president's rhetoric and personnel moves indicate a broader agenda. Vought, a key architect of Project 2025, has long advocated for shrinking the federal bureaucracy and purging civil servants deemed politically hostile to conservative priorities. By threatening to eliminate entire "Democrat agencies," Trump appears to be testing the limits of executive power during a funding lapse — and signaling an intent to reshape Washington's institutions if the standoff continues.

Analysts say such cuts could target agencies tied to environmental regulation, public broadcasting, and social welfare, many of which conservatives have sought to defund for years.

Democrats Condemn "Coercive Tactics"

Democratic leaders accused Trump of using federal employees as political hostages. Senate Minority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries blasted his remarks as "a blatant attempt at intimidation", warning that mass firings would be challenged in court.

Republicans shut down the government because they can't be bothered to protect health care for Americans across this country.

Premiums are set to more than double! Americans cannot afford this. pic.twitter.com/GRXhQ2VrnW

— Chuck Schumer (@SenSchumer) October 1, 2025

Despite a few defections, with two Democrats and one independent senator signaling openness to negotiations, most of the party remains united in opposing the Republican bill, which would extend funding only through November 21 without addressing health coverage.

Weekend Votes, Mounting Pressure

The Senate adjourned Thursday for Yom Kippur, but another vote is expected Friday, with additional sessions likely over the weekend. Some Republicans have floated adjourning if Democrats continue to block the bill, but House Speaker Mike Johnson urged senators to remain in Washington.

"The House is coming back next week, hoping that they will be sending us something to work on, that we can get back to work and do the people's business," Johnson told reporters.

Meanwhile, Treasury Secretary Scott Bessent warned the shutdown could dent GDP growth if it drags on, saying: "This isn't the way to have a discussion — shutting down the government and lowering the GDP."

Economists estimate that each week of closure could cost the economy up to $15 billion, adding pressure on both sides to strike a deal.

Public Blame and Political Risk

Polling suggests Americans are split on responsibility for the shutdown. A Washington Post survey found that 47% blame Trump and congressional Republicans, compared with 30% blaming Democrats.

However, a New York Times/Siena poll found that two-thirds of voters believe Democrats should not allow the government to remain closed even if Republicans reject their conditions.

With public patience wearing thin, the White House appears to be gambling that economic strain will force Democrats to yield, while Democrats are betting that Trump's threats of permanent job cuts will backfire politically.

Read more: Vance shifts blame to Democrats for gov't shutdown as layoffs loom