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Federal Employees Brace for Potential Layoffs Amid Government Shutdown Threat

9/27/2025
As the government shutdown deadline approaches, federal employees are left in limbo, facing potential layoffs and furloughs. With Congress divided, uncertainty looms over agency operations and job security.
Federal Employees Brace for Potential Layoffs Amid Government Shutdown Threat
Federal employees are facing potential layoffs and furloughs as a government shutdown looms, leaving many uncertain about their job security.

Concerns Rise Among Federal Employees Amid Potential Government Shutdown

Federal employees are increasingly concerned following recent guidance from the White House indicating that a significant number of them may face layoffs if a government shutdown occurs next week. Many employees have received the message that they will be sent home without pay, but only until the shutdown concludes. This has led to confusion, as agency officials clarified that employees would endure standard shutdown furloughs rather than reduction-in-force (RIF) notices.

Clarification on Employment Status During Shutdown

One employee from the General Services Administration (GSA) shared, “We were told we won’t be RIF’d, regardless of whether we have to work.” This sentiment reflects the communications many federal employees are receiving as the deadline for federal spending looms. Current funding is set to expire first thing Wednesday morning, and the political landscape reveals a stark division among lawmakers regarding a plan to prevent a shutdown.

Legislative Developments and Party Divisions

The House has passed a stopgap funding bill largely along party lines, designed to keep federal agencies operational through November 21. However, this measure has faced resistance from Democrats in the Senate, effectively stalling its progress. In a significant shift from traditional shutdown procedures, the White House’s Office of Management and Budget (OMB) issued a memorandum directing agencies to prepare for mass layoffs if Congress fails to take action before the deadline.

OMB Guidance and Federal Employee Reactions

The OMB's memo specifically instructed agencies to prepare reduction-in-force notices for employees whose positions are funded directly through annual appropriations and do not align with President Trump’s priorities. Many federal employees expressed frustration, noting they have yet to receive clear guidance on how to implement the OMB's instructions, which they described as unusual given the impending deadline.

Despite the OMB's directive, various agency leaders have taken a more tempered approach. At a town hall meeting, Commissioner Tim Gribben of the Bureau of the Fiscal Service within the Treasury Department described the memo as “more of political theater” rather than a concrete plan. He did not explicitly guarantee that employees would only face furloughs and not RIFs, but hinted at this outcome, especially since the bureau has already experienced significant staffing reductions through attrition.

Understanding Furloughs vs. Layoffs

During previous government shutdowns, employees funded by sources other than annual appropriations, as well as those deemed essential for protecting life and property, typically continue to work, albeit with delayed pay. All non-essential employees are furloughed but are assured of back pay once the government reopens. The new OMB memo directs agencies to prepare furlough notices alongside any RIFs they may issue.

An employee from the U.S. Geological Survey within the Interior Department reported that leadership has instructed staff to brace for the usual furloughs, impacting a slight majority of the workforce, but not for layoffs. Many employees believe the OMB memo is intended to serve as a scare tactic.

Agency Responses and Political Implications

Not all agencies are adopting a similar stance. An official from the Agriculture Department indicated that direct communication with the OMB made it clear that layoffs would indeed happen on October 1 if Congress does not prevent the government from shutting down. They were reassured that mandatory programs would continue, but employees in discretionary roles—necessary for maintaining mandatory programs—would be let go. “They want people to feel the impact of the shutdown,” the official recounted, referring to the administration’s strategy.

Political Reactions and Calls for Negotiation

Senate Minority Leader Chuck Schumer, D-N.Y., along with other Democratic leaders, has stated they will not support the spending bill without addressing certain healthcare premiums set to rise at the year's end. Schumer has expressed confidence that any layoffs could be challenged in court or reversed later, as the administration has done in specific instances. "This is an attempt at intimidation,” Schumer remarked. “Donald Trump has been firing federal workers since day one—not to govern, but to scare."

Everett Kelley, president of the American Federation of Government Employees, has urged President Trump to engage in negotiations instead of issuing threats. “Federal employees are not bargaining chips,” Kelley stated. “They are veterans, caregivers, law enforcement officers, and neighbors who serve their country and fellow Americans every day. They deserve stability and respect, not pink slips and political games.”

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