Ahead of a potential government shutdown on October 1, the White House Office of Management and Budget has directed federal agencies to prepare for mass layoffs targeting employees in programs that lack funding or do not align with presidential priorities. The memo, obtained by POLITICO, instructs agencies to draft Reduction-in-Force (RIF) plans, which could result in permanent job losses for thousands of workers if funding lapses.
OMB Director Russ Vought emphasized that programs not covered by H.R. 1 appropriations or deemed inconsistent with the administration’s goals would face cuts. The directive marks a departure from past shutdowns, where employees were typically furloughed rather than fired. Agencies must submit RIF plans to OMB for approval immediately, with notices issued even to staff who would normally be exempt.
Key agencies unaffected by potential layoffs include Social Security, Medicare, Veterans benefits, military operations, law enforcement, Immigration and Customs Enforcement (ICE), Customs and Border Protection (CBP), and air traffic control. However, other departments face uncertainty as the administration escalates its leverage in a standoff with Congress.
The White House has criticized Democratic demands for $1 trillion in new spending, accusing lawmakers of “insane” priorities. Senate Democrats have rejected a House-passed short-term funding bill, instead pushing for a bipartisan package that includes concessions like rolling back Medicaid cuts and extending health insurance tax credits. President Trump has dismissed negotiations, labeling Democratic leaders’ proposals as “unserious and ridiculous.”
With the fiscal year ending September 30, the government faces a shutdown unless Congress passes new funding. The administration’s threat of permanent job cuts adds tension to the deadlock, as federal workers who resigned earlier this year exit payroll. Agencies are now under pressure to finalize RIF plans amid rising stakes.
