White House Says 'No Immediate Layoffs', But Risks Remain As Govt Shutdown Continues

With the standoff appearing set to stretch into its seventh day, the White House on Monday backed off President Donald Trump's assertion that government employees were already being laid off, but warned that the shutdown could trigger job losses, Reuters reported.

During the first week of government shutdown, the Trump administration cut off some federal funds to Democratic-led cities and states amid increased apprehensions about mass firings, though none appeared to be forthcoming.

Trump said on Sunday night that layoffs were taking place "right now," but White House Press Secretary Karoline Leavitt said on Monday he had been referring to those furloughed since Congress allowed funding to expire on Oct. 1, as per the Reuters report. She also said that White House Budget office is continuing to work with agencies on who needs to be laid off in case the shutdown continues, the report added.

Labour unions in the US, representing federal workers, have sued to prevent the layoffs, warning that such a move may result in criminal penalties.

The current partial shutdown that began on Oct. 1 is on track to be the fourth-longest in US history, since the 1995 shutdown, according to the report.

The Republican-led Senate for a fifth time rejected duelling measures to fund federal agencies, with insufficient support for both a Republican proposal to fund operations through Nov. 21 and a Democratic version that would also extend healthcare subsidies due to expire at the end of the year.

Trump said he is open to reach a deal on healthcare subsidies which helped 24 million Americans access affordable health insurances through Affordable Care Act. His move is in contrast to the Republican party's opposition to the Act for years. The US President said negotiations are on in this regard.

However, Senate Democrat Chuck Shumer denied there were any negotiations were ongoing.

(With inputs from news agencies)