Federal agencies are bracing for possible mass layoffs as the White House instructs them to draft permanent firing plans ahead of a potential government shutdown, according to a memo obtained by news outlets. In it, the Office of Management and Budget (OMB) directs agencies to draft "reduction-in-force" (RIF) plans that could lead to permanent job cuts, especially for programs without guaranteed funding and those not aligned with President Trump's priorities, per Politico. This marks a notable shift from past shutdowns, which typically saw workers temporarily furloughed and later reinstated when government funding resumed.
OMB Director Russ Vought's guidance increases the pressure on Congress, using the threat of permanent job losses as leverage in the standoff over federal spending. The memo notes that if Congress passes a stopgap bill by Sept. 30, these drastic steps won't be necessary. Still, agencies were told to identify programs that would lose discretionary funding on Oct. 1 and have no alternative source of funding, draft RIF plans, and inform potentially affected staff. It's an "extraordinary ultimatum," per the New York Times. Essential services like Social Security, Medicare, military operations, and air traffic control are set to continue, an unnamed OMB official tells Politico.
The memo comes as lawmakers remain deadlocked, with a stopgap spending bill stuck in the Senate as Democrats push for broader negotiations, including on Affordable Care Act subsidies. While Senate Minority Leader Chuck Schumer dismissed the move as intimidation and predicted any firings would be reversed, per CNN, House Minority Leader Hakeem Jeffries warned constituents about the real risk, casting it as a targeted blow to federal workers. "Their goal is to ruin your life," he said, per Politico.
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