The Office of Management and Budget (OMB) has recently issued a directive urging federal agencies to consider mass layoffs in the event of a government shutdown. This notification comes as negotiations between Republicans and Democrats falter, raising concerns about the potential impact on federal employees and essential services.
A letter sent on Wednesday indicates that the Trump administration is providing agencies with the authority to initiate mass firings through the reduction-in-force mechanism, a tool previously employed by the Department of Government Efficiency (DOGE) to streamline the federal workforce. This move signals a serious escalation in the ongoing budget discussions.
The memo, circulated to agency leadership and general counsels, emphasizes that programs lacking mandatory appropriations will be disproportionately affected by a shutdown. “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,” the memo states. This highlights the urgency of the situation as funding is set to expire on September 30 unless Congress and the President can broker a short-term funding agreement.
Additionally, the reduction-in-force notices would be issued “in addition to” furlough notices, which means that some employees could face permanent layoffs rather than just temporary furloughs. The looming threat of mass layoffs has raised alarms among federal employees and unions, who fear job security amid political turmoil.
President Trump recently canceled a meeting with Democratic leaders, suggesting that further negotiations would not yield productive results. He criticized their demands, labeling them as “unserious and ridiculous.” On the other hand, Democrats are advocating for the reversal of Trump’s cuts to Medicaid and other health programs, alongside an additional $350 billion over ten years for Affordable Care Act subsidies as part of any potential shutdown deal.
The notice sent to agencies, which has been obtained by PBS News, places blame on Democrats for pushing toward a shutdown with what it describes as “insane demands, including $1 trillion in new spending.” This rhetoric highlights the deepening divide between the two parties as they grapple with the pressing need for a funding solution.
Senate Minority Leader Chuck Schumer, a Democrat from New York, expressed his frustration with the current administration’s approach to negotiations. In an interview with PBS News Hour, Schumer stated, “When I was majority leader … we never had a shutdown because I sat down with the Republican leader and we came to an agreement. This president is just — he’s not up to being president if he can’t sit down and negotiate with the two Democratic leaders.”
As the September 30 deadline approaches, the urgency for a resolution becomes increasingly critical. Both parties must come together to avert a government shutdown that could lead to widespread consequences for federal employees and services across the nation.
