Last month White House communications aide Kelly Sadler quipped during meeting that they didn't need to worry about Senator John McCain's opposition to President Trump's nominee for Central Intelligence Agency director because, "It doesn't matter, he's dying anyway".
Some media reports suggest that Sadler was pushed out of her position because she had accused White House Strategic Communications Director Mercedes Schlapp of being the one who leaked her comments to the media.
Sadler has been under fire since her remark about Senator John McCain's terminal illness during a closed-door meeting last month. But the White House has refused to apologize for her comments, prolonging the controversy.
Sen. McCain is now battling terminal brain cancer and was also mocked by Trump during his campaign.
Sadler reportedly called Meghan McCain after the insensitive remark, but it did not go over well with Senator's daughter.
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"Kelly Sadler is no longer employed within the Executive Office of the President", White House Deputy Press Secretary Raj Shah said Tuesday.
Ms McCain suggested on the TV programme The View that the White House aide should lose her job. Schlapp, who was in the room when Sadler made her comment, denied being the source of the leak.
Sadler was a special assistant to the President, responsible for compiling and distributing talking points to administration allies. This angered Schlapp, who is married to Matt Schlapp, head of the American Conservative Union.
White House press secretary Sarah Huckabee Sanders mid-last month would not publicly apologize either, and instead attacked the leakers.
"It's an honor and privilege to work for the president and to be part of his administration. And they should be fired".