Government Shutdown: Day 6 Updates – Trump Threatens Layoffs While GSA Brings Back Employees

narcolepticnerd October 6, 2025 0 comments

Published: October 6, 2025
Sources: Federal News Network, CNN Politics

Despite the threat of more layoffs, one agency is doing the opposite: reinstating hundreds of laid-off employees and keeping them working during a shutdown.

The Trump administration is doubling down on threats to lay off thousands of federal employees if Congress doesn’t end the government shutdown soon, but has yet to deliver on its ultimatum.

President Donald Trump told reporters Sunday night that layoffs were “taking place right now.” But in a press briefing Monday, White House Press Secretary Karoline Leavitt said Trump was actually referring to the hundreds of thousands of federal employees who have been furloughed since the shutdown began on Oct. 1.

“Millions of American federal workers are under enormous financial stress as a result, wondering how they will pay their bills and take care of their families. If the Democrats do not vote to open the government tonight, federal workers will not receive their next full paycheck,” Leavitt said.

Leavitt said last week that layoffs “in the thousands” were imminent, and Office of Management and Budget Director Russ Vought told Republican lawmakers that layoffs would happen in the coming days.

On Monday, Leavitt said OMB is “continuing to work with agencies on who, unfortunately, is going to have to be laid off if this shutdown continues,” and those plans would proceed if Congress didn’t reach a deal to end the shutdown.

Monday afternoon, the Senate, for a fifth time, failed to pass stopgap funding bills introduced by both Democrats and Republicans.

“We don’t want to see people laid off. But unfortunately, if this shutdown continues, layoffs are going to be an unfortunate consequence of that,” she added.

Unions representing government employees have asked a federal judge to preemptively block the Trump administration from carrying out any mass layoffs during the shutdown.

GSA Reinstates Hundreds of Employees

Despite the threat of more mass layoffs, one agency is doing the opposite: reinstating hundreds of formerly laid-off employees and keeping them on the job during the shutdown.

The General Services Administration on Monday brought hundreds of employees back to work to manage its governmentwide real estate portfolio, after rescinding reduction-in-force notices they had delivered months ago. Several GSA employees told Federal News Network that the shutdown did not hamper plans to bring these reinstated employees back to work, and that many of them will continue to work and be paid on time during the lapse.

GSA employees told Federal News Network last month that GSA planned to rescind RIFs for about 400 Public Buildings Service employees.

An industry official told Federal News Network that about 75% of PBS employees who were given the reinstatement option agreed to come back to work. A GSA spokesperson referred questions to OMB.

GSA’s updated contingency plans call for exempting more than 3,000 Public Buildings Service employees during the shutdown — a majority of the overall PBS workforce. PBS employees make up the vast majority of staff that GSA expects to keep working throughout a shutdown using carryover funds.

According to its latest contingency plan, about 64% of GSA employees are exempt from the current shutdown, because their work is supported by carryover funds and non-appropriated funds. GSA currently has more than 10,700 total employees.

Continued Operations with Carryover Funds

PBS can continue normal operations, including paying its employees and covering its expenses — at least for now — due to “no-year” funds that the agency can carry over from one fiscal year to the next.

“Because GSA is the government’s property manager, GSA personnel will be responsible for maintaining, protecting, and preserving that property to a greater extent than many other agencies that are not responsible for property and asset management governmentwide,” the plan states. “Excepted GSA employees will be responsible for protecting life and/or federal property and providing necessary support to other government agencies to enable them to perform excepted activities.”

PBS had more than 5,600 employees in September 2024, but has gone through significant downsizing under the Trump administration.

During a shutdown, federal buildings generally remain open for employees, but may not be open to the public, and construction contracts at federally owned facilities that are paid for with carryover funds would continue. The agency expects it will be able to make next month’s rent payments for leased office space on time, but would generally be unable to sign new leases if the project wasn’t already underway before the shutdown.

GSA’s work to sell and dispose of underutilized federal buildings would be put on hold during a shutdown. Under the Trump administration, GSA has made it a goal to offload about 50% of its real estate portfolio.

Legal Framework and Property Protection

“GSA’s role as an aggregator of large numbers of government assets and a supplier of critical tools, equipment, and supplies to other federal agencies requires that GSA retain adequate staffing under a lapse in appropriations in order to protect federal property under GSA’s custody and control and to continue to provide critical support to other federal agencies’ exempt and excepted activities necessary for the protection of life and Federal property,” the contingency plan states.

The Antideficiency Act prevents agencies from obligating funds during a lapse in congressional appropriations. But federal employees, in many cases, are exempt or excepted during a shutdown if their work protects “human life or the protection of property.”

The Trump administration has cited the protection of federal buildings as justification for deploying the National Guard into cities like Chicago and Portland.

“The president wants to ensure that our federal buildings and our assets are protected, and that’s exactly what he’s trying to do,” Leavitt said.

Long-term Shutdown Implications

Former PBS Commissioner Norman Dong wrote in a January 2019 white paper that a shutdown lasting a few days would “have a relatively minor impact” on federal leasing, but a protracted shutdown could hypothetically impact the agency’s ability to make lease payments for governmentwide office space. In that scenario, Dong wrote that the federal government would have to take “unprecedented steps to fund its ongoing rent obligations to avoid significant disruption and consequences.”

“Most of the uncertainty surrounding this shutdown’s effect on GSA’s leased portfolio revolves around how long GSA goes without funding,” Dong wrote.

GSA’s contingency plans state that the number of exempt employees “will decrease as carryover funds are exhausted,” and that in some cases, exempt employees could be designated as “excepted,” meaning they would continue showing up to work, but no longer be paid on time until the shutdown ends.

“Additionally, depending on the length of a shutdown and GSA’s availability of funds, other activities may need to cease as well,” the plan states.

GSA oversees more than 8,800 federal buildings that cover 359 million square feet of space.

Senate Gridlock Continues Into Week Two

Nearly a week into the government shutdown, gridlock in the Senate persists. Dueling plans to fund the federal government once again failed on Monday evening, marking the fifth consecutive failure to advance Republican proposals and continued rejection of Democratic alternatives.

Trump’s Mixed Messages on Healthcare Negotiations

Ahead of the Monday votes, President Donald Trump seemed to suggest openness to a deal on health care tax credits that have been at the center of the shutdown fight.

“We have a negotiation going on right now with the Democrats that could lead to very good things,” Trump said. “I’m talking about good things with regard to health care.”

However, the president later clarified on social media that he is willing to discuss health policy after the government reopens, reiterating Republicans’ long-standing position and contradicting his earlier suggestion of ongoing negotiations.

Democrats Deny Active Negotiations

Earlier Monday, Democratic leadership denied that they were in talks with the White House about ending the shutdown.

“Trump’s claim isn’t true, but if he’s finally ready to work with Democrats, we’ll be at the table,” Senate Minority Leader Chuck Schumer said in a statement.

House Minority Leader Hakeem Jeffries told reporters that no top Democrats have spoken to President Trump about the shutdown and that the White House has been “radio silent” since the president’s sit-down with congressional leaders last week.

The Healthcare Sticking Point

Democrats want to extend enhanced subsidies that have lowered monthly premiums for millions of Americans insured through the Affordable Care Act. Congress increased the tax credits during the pandemic, but the extra help will expire at the end of the year without further action.

The Congressional Budget Office estimates that extending the enhanced subsidies would cost $350 billion over a decade and result in nearly 4 million more people having health insurance in 2035.

Republicans argue the program needs reform and continue to push for a short-term funding extension that would end the government shutdown without immediately addressing Democrats’ health policy demands. Senate Majority Leader John Thune called the current Obamacare subsidies “broken” and said any extension would need to include reforms.

Layoff Threats Continue

The White House continues to warn of mass firings if the shutdown continues. White House Press Secretary Karoline Leavitt didn’t provide a specific timeline for those potential layoffs on Monday but suggested that firings remain “on the table.”

“The Office of Management and Budget is continuing to work with agencies on who, unfortunately, is going to have to be laid off if this shutdown continues,” Leavitt said.

She blamed Democrats for any potential layoffs, echoing Trump’s Sunday statement that anybody laid off would be due to “Democrat layoffs.”

Growing Impact on Air Travel

The shutdown’s effects are increasingly visible in air travel disruptions:

Airport Closures: Hollywood Burbank Airport’s control tower closed Monday night due to staffing shortages, forcing pilots to coordinate their own takeoffs and landings
Flight Delays: Newark Liberty International Airport experienced delays of nearly an hour, while Denver International Airport saw 39-minute delays
Controller Shortages: Twelve air traffic control facilities are bracing for staffing shortages, with some areas seeing up to 50% reductions in staffing
Program Cuts: The Essential Air Service program providing subsidies for flights to small cities will run out of funding Sunday

Transportation Secretary Sean Duffy warned that more controllers are calling out sick during the shutdown, with safety remaining the top priority as the FAA implements flight delays to maintain safe operations.

Key Points

Federal Employment Contradictions

Threat vs. Reality: Trump administration threatens mass layoffs but GSA is actually reinstating hundreds of employees
GSA Exception: General Services Administration brought back ~400 Public Buildings Service employees using carryover funds
Funding Source: GSA can continue operations with “no-year” funds that carry over between fiscal years

Political Stalemate

Congressional Deadlock: Senate failed for fifth time to pass stopgap funding bills on Monday
Mixed Messages: Trump suggested ongoing healthcare negotiations, then clarified talks would happen after reopening
Communication Breakdown: Democrats deny active negotiations; White House described as “radio silent”
Healthcare Divide: Democrats want ACA subsidy extension ($350B/decade), Republicans demand reforms first

Growing Operational Impact

Air Travel Disruption: Control tower closures, flight delays, and controller shortages affecting major airports
Safety Concerns: Up to 50% staffing reductions at some air traffic control facilities
Program Cuts: Essential Air Service for small cities loses funding Sunday
Federal Buildings: GSA continues operating 8,800+ buildings covering 359 million square feet