Image source, JIM LO SCALZO/EPA/Shutterstock

Earlier this morning, President Donald Trump was asked by a reporter about how many federal workers he plans to lay off if a government shutdown is not averted.

"Well, we may do a lot," he said.

Trump blamed the Democrats, claiming they wanted more people to enter the US illegally.

White House budget chief Russ Vought recently circulated a memorandum explaining how the Trump administration would use a shutdown to make new, long-term reductions in federal spending and employment rolls.

Positions and government programmes deemed "nonessential" during the closure will be permanently shuttered – an expansion of the Department of Government Efficiency (Doge) cuts from earlier this year.

But Democratic leaders seem to believe the threats are a bluff or a negotiating tactic.

Senate Minority Leader Chuck Schumer called it "an attempt at intimidation".

"Donald Trump has been firing federal workers since day one - not to govern, but to scare," Schumer said. "This is nothing new and has nothing to do with funding the government."

Anthony Zurcher and James FitzGerald

At this point, prospects for some kind of government shutdown appear high, and Vice-President JD Vance said as much after Trump met the congressional leaders on Monday.

On the Republican side, Trump administration officials have been unwilling, so far, to offer any substantive concessions.

They appear to believe Democrats, as the side making demands in exchange for keeping the government open, will bear the brunt of the public's blame – as they have in some past shutdowns.

Democrats, meanwhile, believe their push for preserving health-insurance subsidies is a popular one.

Anthony Zurcher
North America correspondent

The US is hurtling towards a government shutdown on Tuesday night, and there appears to be little appetite on either side of the partisan divide to avoid it.

A last-ditch meeting between President Donald Trump and Democratic leaders in Congress made little progress. If anything, both sides have been digging deeper into their positions.

"I think we're headed to a shutdown because the Democrats won't do the right thing," Vice President JD Vance told reporters after the meeting at the White House. "You don't put a gun to the American people's head and say, 'Unless you do exactly what Senate and House Democrats want you to do, we're going to shut down your government'."

Democratic Senate leader Chuck Schumer said there were still "very large differences" between his party and the White House.

No one sounded optimistic.

We're covering all of the key developments in this story, so stick with us.

A major US government shutdown is looming as a Tuesday night deadline approaches for lawmakers to find a way to agree on a spending bill.

Republican and Democratic lawmakers have so far been holding a steady stalemate in their negotiations over certain aspects of the bill, like expiring health care subsidies. If they can’t reach an agreement by midnight, then parts of the federal government will come to a halt.

We'll bring you the latest developments and analysis right here on this page - stay with us.