Federal agencies told to prepare for mass firings if government shuts down

The White House has directed federal agencies to prepare for mass layoffs as a government shutdown looms on October 1, targeting programs that will lose funding without alternative sources.

The Office of Management and Budget (OMB) has asked agencies to prepare reduction-in-force notices for employees in programs that do not align with presidential priorities, with the potential for layoffs contingent on the absence of a continuing resolution from Congress.

Essential programs such as Social Security, Medicare, and military operations are expected to remain operational during a government shutdown, despite potential furloughs for other federal employees.

Senate Minority Leader Chuck Schumer criticized the OMB's actions as intimidation tactics, while the House passed a temporary funding measure that faces hurdles in the Senate, requiring bipartisan support for approval.

Government Shutdown Impending: Mass Layoffs on the Horizon

The White House has issued a directive for federal agencies to prepare for potential mass layoffs in the event of a government shutdown set to begin on October 1. This action particularly targets programs specifically slated for funding expiration without alternate financial resources.

The Office of Management and Budget (OMB) has instructed agencies to draft reduction-in-force (RIF) notices for employees involved in programs that do not align with the priorities of President Donald Trump. The OMB memo, initially reported by Politico, added, "RIF notices will supplement any furlough notices issued due to the lapse in funding."

Furthermore, the OMB emphasized that once the fiscal year 2026 appropriations are finalized, agencies should adjust their RIF plans to retain only the essential personnel needed to fulfill statutory responsibilities.

OMB clarified that if Congress can successfully pass a straightforward continuing resolution to fund the government prior to the deadline, the directives outlined in the memo will not be enacted.

Historically, during government shutdowns, federal employees faced furloughs until a budget agreement was reached, allowing them to return to their roles.

Certain vital programs will operate regardless of a government shutdown. These include Social Security, Medicare, law enforcement, immigration services, veterans benefits, military operations, and air traffic control, according to an OMB official speaking with Politico.

Senate Minority Leader Chuck Schumer (D-NY) criticized the OMB's directives, claiming, "This is an attempt at intimidation. These unnecessary firings are likely to be contested in court, or the administration will be forced to reinstate the employees, as they did just this week."

Current federal funding is set to expire on September 30. The House of Representatives, controlled by Republicans, has passed a temporary funding measure to sustain federal operations until November 21, all without Democratic support.

To advance the measure in the Senate, at least seven Democratic votes are required. Democrats are pushing for the inclusion of an extension of Affordable Care Act subsidies in the funding bill.

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