In a significant development, Russell Vought, the director of the Office of Management and Budget, announced via the social platform X that the “RIFs have begun,” referring to the ongoing reduction-in-force measures aimed at decreasing the size of the federal government. This announcement comes shortly before the government shutdown initiated on October 1, as the White House had previously indicated its intention to implement aggressive layoff tactics. Federal agencies were instructed to submit their reduction-in-force plans to the budget office for review, particularly targeting programs whose funding would lapse during the shutdown.
The White House's budget office indicated in a court filing that it could potentially dismiss over 4,000 federal employees during this shutdown. This announcement highlights the precarious funding situation, which is described as “fluid and rapidly evolving.” The layoffs are expected to significantly impact key departments, including the Department of the Treasury, which may lose over 1,400 employees; the Department of Health and Human Services, facing a loss of more than 1,100 employees; and the Department of Housing and Urban Development, projected to lose over 400 workers. Other agencies, such as Commerce, Education, Energy, Homeland Security, and the Environmental Protection Agency, are also slated for hundreds of layoffs.
In a separate political context, former President Donald Trump responded to the recent Nobel Peace Prize award, noting that the accolade could have been attributed to his administration's peace efforts as he campaigns for the 2024 election. Trump remarked, “You could also say it was given out for ’24, and I was running for office in ’24.” He pointed out that the nomination deadline for the 2025 award coincides with his second term's onset.
Moreover, Trump confirmed that he would not cancel his upcoming meeting with Chinese President Xi Jinping, despite escalating trade tensions. During an Oval Office event concerning prescription drug pricing, he stated, “I’m going to be there regardless.” The two leaders are scheduled to meet at the end of October at a regional conference in South Korea, despite Trump's earlier comments expressing doubts about the necessity of the meeting due to recent Chinese trade restrictions on rare earths.
The Trump administration has also unveiled a landing page for TrumpRX.gov, a new initiative aimed at offering medications directly from manufacturers. Both Pfizer and AstraZeneca will participate in this program, which promises to provide significant discounts on prescriptions. The website prominently features images of Trump, indicating that it will officially launch in January 2026.
In economic news, Wall Street experienced its worst day since April, with the S&P 500 plummeting 2.7%, and the Dow Jones Industrial Average falling by 878 points. This downturn was largely attributed to Trump's announcement on social media regarding a potential “massive increase of tariffs” on Chinese imports, following China's export controls on rare earths—critical materials for various manufacturing sectors.
Later in the day, Trump made headlines again by announcing that drug manufacturer AstraZeneca would provide “major discounts” on prescriptions, heralding it as “another historic achievement in our quest to lower drug prices for all Americans.” He also escalated tensions in the ongoing trade war by declaring an additional 100% tax on Chinese imports, an action that could significantly increase tariff rates.
As the situation unfolds, unions have voiced strong opposition to the layoffs. The Environmental Protection Agency's union described the layoffs as an “illegal abuse of power,” expressing concern over the impact on public health and safety. Similarly, the Education Department is facing layoffs affecting nearly all employees below the director level, leading to fears about the agency's ability to fulfill its mission.
Virginia Senators Mark Warner and Tim Kaine have condemned the layoffs as a “deliberate choice” by the Trump administration, arguing that these actions are not merely a consequence of the government shutdown but a calculated decision to inflict pain on American workers for political gain. They labeled the administration's approach as “irresponsible” and “cruel,” emphasizing the profound impact on the workforce.
