The White House Warns Federal Agencies to Prepare for Massive Layoffs if Government Shutdown Occurs

washington, D.C. — The White House has escalated concerns over a looming government shutdown by instructing federal agencies to prepare comprehensive “reduction-in-force” (RIF) plans, raising the possibility of widespread layoffs if Congress fails to pass a spending bill before October 1. This move signals a dramatic shift from the traditional practice of temporary furloughs during funding lapses.

According to an Office of Management and Budget (OMB) memo obtained by NBC News, the Trump administration is prepared to terminate federal employees outright in the event of a shutdown. The document underscores that programs without mandatory appropriations would no longer be legally required to operate, stating: “RIF notices will be in addition to any furlough notices provided due to the lapse in appropriation.”

Politico was the first to report on the memo, which confirms that certain government workers could permanently lose their jobs if the shutdown occurs. Unlike previous funding gaps that relied heavily on temporary furloughs, this directive suggests a more aggressive approach by the administration.

The memo further explains: “Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown, and we must continue our planning efforts in the event Democrats decide to shut down the government.” Under this guidance, agencies would be required to evaluate job cuts for employees tied to projects or activities that lose discretionary funding after October 1 and are deemed inconsistent with the President’s priorities.

Budget Deadlock Between Democrats and Republicans

Federal Funding is set to expire at midnight on Tuesday. Negotiations between Democrats and Republicans remain at a stalemate. While the Republican-controlled House passed a short-term bill to extend funding through November 21, the Senate rejected both Republican and Democratic proposals, leaving the government on the brink of a shutdown.

The OMB memo has intensified political tensions, framing the issue as a high-stakes battle. It suggests that if Democrats do not support the Republican measure, federal employees could face job losses, thereby placing the burden of responsibility squarely on Democrats’ shoulders.

Strong Pushback from Democratic Leaders

The announcement prompted swift condemnation from Democratic leaders. On Wednesday evening, House Minority Leader Hakeem Jeffries (D-N.Y.) and Senate Majority Leader Chuck Schumer (D-N.Y.) criticized the administration’s threat as a form of political intimidation.

“This is an intimidation attempt. Donald Trump has been firing federal workers since day one—not to govern, but to scare,” Schumer said in a statement. “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 also responded forcefully on social media, writing: “Listen, Russ, you are a malicious political hack. Your threat to engage in mass firings will not scare us. Get lost.” His comments were directed at OMB Director Russell Vought, who signed the memo.

Trump Cancels Meeting with Democrats

Adding fuel to the standoff, President Donald Trump canceled a scheduled Thursday meeting with top congressional Democrats, intensifying fears that no resolution will be reached before the deadline. Schumer accused the president and Republicans of “holding America hostage,” declaring that the responsibility for a shutdown would rest squarely on Trump’s shoulders.

Experts Warn of Long-Term Damage

Policy experts have also expressed alarm over the proposed layoffs. Bobby Kogan, a former OMB official and now senior director of federal budget policy at the Center for American Progress, warned that reduction-in-force actions would cause “enormous self-harm” by needlessly stripping the government of vital talent and expertise during a time of economic uncertainty.

As the deadline approaches, uncertainty looms over federal employees and government services. Without a last-minute budget compromise, the White House’s directive could lead not only to furloughs but also to permanent layoffs—marking one of the most aggressive shutdown strategies in U.S. history.

Reporting by Zoë Richards from New York and Monica Alba from Washington.