On September 29, 2023, the Trump administration began outlining its strategies regarding which federal services will be suspended if the government shuts down this week. Notably, the U.S. health department is expected to furlough a staggering 41% of its workforce, raising concerns about the potential impacts on public health and safety.
The Office of Personnel Management (OPM) issued a memo on Monday, clarifying the restrictions imposed by a 19th-century law that governs federal operations during a shutdown. According to the memo, training and onboarding of new federal employees will be prohibited, but employees involved in managing layoffs will continue their duties. In a significant departure from past practices, furloughed employees will now have access to their government-issued computers, allowing them to check for layoff notices via email.
Senator Gary Peters of Michigan, who is the top Democrat on the Senate committee overseeing shutdown operations, expressed grave concerns about the administration's plan. He warned that mass firings of nonpartisan experts could lead to long-term damage to the country and compromise the safety of the American people. The ongoing impasse between Republicans, who control both chambers of Congress, and minority Democrats has resulted in a failure to reach an agreement on a stopgap funding bill to prevent a government shutdown.
Despite the looming shutdown, certain government benefits will remain unaffected. Programs funded by mandatory spending—such as Social Security payments for seniors, as well as healthcare access through Medicare and Medicaid—will continue uninterrupted. Additionally, federal student loans and Pell grants for financially needy students will also persist, providing some stability amidst the chaos.
Unlike previous shutdowns, where plans for federal agency responses were released weeks in advance, many departments this year unveiled their strategies just 24 hours before the potential funding lapse. The Department of Labor has indicated that its Bureau of Labor Statistics will halt all operations, meaning that crucial economic data scheduled for release during the shutdown will be postponed. Analysis of the staffing data reveals that the Trump administration has implemented significant layoffs, with approximately 12,000 fewer full-time employees at the Health and Human Services Department compared to last year, and around 1,700 fewer employees at the Education Department.
The Veterans Affairs department assures that benefits and medical care will continue during a shutdown, although maintenance operations at cemeteries will be suspended. Conversely, the Internal Revenue Service will maintain full operations, thanks to supplemental funding from the Inflation Reduction Act signed by former President Joe Biden. This situation presents a unique advantage for the Trump administration, despite Republican criticisms regarding the increased funding for tax enforcement and services.
The Bureau of Economic Analysis, tasked with calculating U.S. GDP statistics, will also pause its economic data releases if the shutdown occurs, further complicating the economic landscape during this uncertain period. As Congress continues to negotiate funding solutions, the implications of these decisions will significantly affect the American public and the economy at large.
Reporting by Bo Erickson; editing by Scott Malone, Deepa Babington, and Stephen Coates. Bo Erickson is a U.S. politics correspondent based in Washington, D.C., covering the impact of lawmakers' decisions on constituents as well as federal funding issues.
