The White House National Economic Council Director, Kevin Hassett, has warned that layoffs of federal employees could begin if President Donald Trump determines that congressional talks to end the ongoing government shutdown are “going nowhere.”

Speaking on CNN’s State of the Union, Hassett said officials remain hopeful that fresh negotiations could yield progress.

“Everybody’s still hopeful that when we get a fresh start at the beginning of the week, we can get the Democrats to see that it’s just common sense to avoid layoffs like that,” he said.

The warning comes as the shutdown enters its fifth day, with Congress deadlocked over funding legislation.

According to NBC News, Democrats are insisting on including a permanent extension of enhanced health-care tax credits in any funding bill. Republicans, however, argue that such discussions should wait until December a disagreement that has deepened the standoff.

The Senate on Friday once again failed to pass two competing spending bills: the Republican version, which would fund the government through late November, and the Democratic version, which included additional health-care funding.

The Trump administration has repeatedly cautioned that mass layoffs could be imminent if the shutdown continues. President Trump has even described the standoff as an “unprecedented opportunity” to reduce the size of federal agencies though no action has yet been taken.

Hassett said Trump and OMB Director Russ Vought are “lining things up and getting ready to act if they have to,” but remain hopeful that an agreement can be reached.

“If Democrats are reasonable once they get back into town on Monday,” Hassett added, “then there’s no reason for those layoffs.”