The White House is tightening its pressure on Democratic lawmakers as the U.S. government shutdown enters its second week, saying it will give them another chance to agree on a spending bill before beginning mass layoffs of federal employees.

With the Senate scheduled to vote Monday night for the fifth time on a stopgap bill to keep the government operating until November 21, Kevin Hassett, President Donald Trump's top economic adviser, argued that it's time for Democrats to be "reasonable."

Trump has said he will use the government shutdown to lay off thousands more federal employees, who are typically furloughed during a shutdown. Democrats have said they won't support the bill unless it addresses Affordable Care Act subsidies that are set to expire at the end of 2025, as well as Medicaid funding cuts implemented through Trump's signature budget bill for his second term.

"I think everyone is still hoping that as we start a new beginning at the beginning of the week, we can get Democrats to realize that avoiding layoffs is a reasonable thing," Hassett said Sunday on CNN's "State of the Union." "Let's go back to town on Monday, and if that's the case, then I don't think there's any reason for the layoffs."

From the White House on Sunday, Trump blamed Democrats. "That's up to them," he said. "Whoever gets laid off, it's because of the Democrats." The administration has been threatening layoffs for days, but officials have offered varying timelines for each action.

However, there are few signs of an imminent breakthrough.

Negotiations to end the government shutdown, which began on October 1, stalled late last week. Although Republicans control both chambers of Congress, they need the support of several Democrats to secure the 60 votes needed for a spending bill to pass the Senate. Democrats are insisting that their healthcare policy demands be added to the temporary spending bill, while Republicans want those issues addressed after the government reopens. One potential solution is for Republicans to promise a vote on healthcare subsidies by the end of the year, but so far Republicans have been reluctant to do so.

House Republicans have said they will remain outside Washington until the government shutdown ends, leading Senate Democrats to complain that a key negotiating partner is completely absent. House Republican leaders have said they will not act until the Senate passes the stopgap bill they have agreed to.

The government shutdown has shut down the government beyond essential services, caused hundreds of thousands of Americans to miss paychecks, and limited access to government services. Lawmakers are likely to feel even greater pressure as federal employees began missing paychecks on October 10 and the military stopped receiving paychecks on October 15.

So far, Senate Republicans have focused on encouraging the remaining five Democrats to dissent from Senate Democratic leader Chuck Schumer and vote for the unconditional stopgap bill that would keep the government operating until November 21.

"All we have to do is get the remaining five Democrats to vote yes," Senate Majority Leader John Thune, a Republican from South Dakota, said on Fox News' "Sunday Morning Futures." "This is where you need to break with your leader and do the right thing for the country."

Republicans are taking a carrot-and-stick approach, offering soft promises to address Obamacare, or ACA, subsidies on the one hand, while threatening mass layoffs and project cancellations on the other. Specific targets of this pressure campaign include Gary Peters of Michigan, Jeanne Shaheen of New Hampshire, and Maggie Hassan, along with senators representing large numbers of federal employees, such as Mark Warner and Tim Kaine of Virginia.

Moderate Republicans are acting as intermediaries for moderate Democrats, trying to convince them to reopen the government. Midweek negotiations led by senators seeking an extension of some form of Obamacare subsidies, such as Mike Rounds of South Dakota and Susan Collins of Maine, broke down Thursday night but are likely to resume Monday. (alg)

Source: Bloomberg