The White House is preparing for potential widespread layoffs across federal agencies if the government faces a shutdown next week, introducing new uncertainties about the status of government operations beyond the October 1 funding deadline. This prospect has unsettled the federal workforce, which has already been affected by significant layoffs earlier this year as part of the U.S. Department of Governmental Efficiency (DOGE) Service’s efforts. Federal employees are now facing the possibility of losing their jobs as early as Wednesday.
President Donald Trump hinted at the possibility of a government shutdown, attributing it to the Democrats during a conversation with reporters. In anticipation, the White House Office of Management and Budget has issued guidelines urging federal agencies to consider laying off employees involved in programs not funded by existing law, unless they align with the administration’s priorities. If a shutdown occurs, these agencies would be expected to operate with the smallest staff necessary once funding resumes.
These potential layoffs could exacerbate the staff cuts implemented earlier this year, where numerous federal employees were offered buyouts. However, some agencies are now attempting to rehire staff due to operational challenges caused by the personnel reductions.
The memo increases pressure on congressional Democrats, who have refused to support a funding extension through November 21 without concessions on health care from Republicans. Senate Minority Leader Chuck Schumer criticized the administration’s actions as intimidation, warning that such layoffs could either face legal challenges or require rehiring later. House Minority Leader Hakeem Jeffries echoed this sentiment, accusing the administration of punitive measures against hardworking families.
This approach marks a stark departure from previous shutdowns, where employees typically faced temporary furloughs and returned to work once funding resumed. Now, agencies are being instructed to prepare employees for potential layoffs even if they are not furloughed. Historically, some government employees have continued working without pay during a shutdown, while others remained home.
The GOP-backed law passed recently secured increased funding for defense and immigration enforcement, potentially enabling more programs to remain operational, but the specific impact on various federal programs remains unclear. As speculations about job reductions spread, federal workers expressed feelings of fear and frustration. Many, like an EPA staffer, feel that they are being treated as mere pawns in the administration’s strategy.
Across different government departments, staff seem to be in the dark regarding their fate during a shutdown. Discussions are informally taking place among employees, but formal plans appear to be lacking in several key agencies. At the Federal Emergency Management Agency (FEMA), officials are only beginning to plan for which employees might be furloughed and how to manage potential emergencies like natural disasters without adequate staff.
The stalemate in Congress has both Republicans and Democrats striving to avoid a shutdown but disagreeing on the conditions of a funding extension. Republicans have suggested a continuing resolution (CR) to keep government operations at current spending levels through November 21, but Democrats have been pushing for additional provisions, such as extended subsidies for Affordable Care Act plans and reversing Medicaid cuts.
Earlier attempts to pass these plans failed in the Senate, and discussions appear gridlocked as lawmakers try to negotiate a viable solution. In an environment of uncertainty, President Trump has canceled planned talks with Democratic leaders, while Republicans urge a hard stance against what they view as exorbitant Democratic demands.
As the fiscal year draws to a close, the potential shutdown adds another layer of unpredictability to an already tense political atmosphere, with both parties striving to balance governance priorities and budgetary constraints. While the outcome remains uncertain, there is hope that an agreement will emerge in time to prevent a shutdown.