The White House is warning federal agencies to get ready for permanent layoffs if the government shuts down next week.
In a memo sent by the Office of Management and Budget (OMB), agencies were instructed to draft “reduction-in-force” (RIF) plans that would result in mass firings, not just the usual temporary furloughs.
The OMB told agencies to look at which programs will lose discretionary funding on Oct. 1 and have no other funding source.
Those jobs may be cut for good if they don’t align with President Donald Trump’s policy goals.
“Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown,” the memo said.
This Shutdown Could Break from Past Practice
The memo, shared with POLITICO before being released to agencies, shows the administration is willing to go beyond past shutdown playbooks.
In previous shutdowns, most federal workers were temporarily sent home and brought back once Congress passed a funding bill.
This time, the Trump administration is signaling it may use a shutdown to permanently shrink the federal workforce.
OMB Director Russ Vought, who issued the memo, is pushing for RIF plans even for employees who would normally be exempt from furloughs.
Agencies are also being told to issue notices to those workers now.
Essential Services to Continue
Services that will continue no matter what include Social Security, Medicare, veterans’ benefits, military operations, law enforcement, Immigration and Customs Enforcement, Customs and Border Protection, and air traffic control, according to an OMB official who spoke anonymously.
Congressional Stalemate Fuels Shutdown Threat
The timing is critical. The government runs out of money on Sept. 30. The House passed a stopgap funding bill to extend operations through Nov. 21, but Senate Democrats have blocked it.
They’re asking Republicans to negotiate a bipartisan deal that may include continuing subsidies under the Affordable Care Act.
The OMB memo notes that if Congress passes a clean funding bill in time, these steps won’t be necessary.
Democrats Warn of Broader Agenda Behind Memo
Senate Minority Leader Chuck Schumer has been warning for months that Trump could use a shutdown to gut government programs.
Back in March, he said a shutdown would be “a gift” to the administration, giving it the chance “to destroy vital government services at a significantly faster rate than they can right now.”
After POLITICO reported on the memo, Schumer called it “an attempt at intimidation” and said the firings are “nothing new and have nothing to do with funding the government. These unnecessary firings will either be overturned in court or the administration will end up hiring the workers back, just like they did as recently as today.”
Jeffries Issues Warning to Virginia Voters
House Minority Leader Hakeem Jeffries responded on X, targeting voters in Virginia, where many federal employees live.
“Their goal is to ruin your life and punish hardworking families already struggling with Trump Tariffs and inflation,” he wrote. “Remember in November.”
Fate of Federal Workers Rests on Congressional Action
If a shutdown does happen and agencies follow through with the White House’s directive, it could result in permanent job loss for federal employees tied to programs Trump no longer supports.
The outcome now depends on whether Congress can pass a funding deal before the deadline.