Home Team SNG White House Requests Contingency Plans For Mass Layoffs Amid Government Shutdown Threat

White House Requests Contingency Plans For Mass Layoffs Amid Government Shutdown Threat

The White House's Office of Management and Budget (OMB) sent the memo to federal agencies and asked them to identify programs, projects and activities where discretionary funding will lapse on October 1 if the U.S. Congress does not pass legislation to keep the federal government open.
White House
A view shows contrails left behind by airplanes in the sky over the White House, in Washington, D.C., U.S., February 28, 2025. REUTERS/Brian Snyder/ File Photo

On Wednesday, the White House instructed federal agencies to prepare strategies for large-scale employee dismissals in the event of a government shutdown next week. The move signals a break from previous shutdowns, when workers were generally placed on temporary furlough.

The White House’s Office of Management and Budget (OMB) sent the memo to federal agencies and asked them to identify programs, projects and activities where discretionary funding will lapse on October 1 if the U.S. Congress does not pass legislation to keep the federal government open.

“Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown,” the OMB said in the memo, which the White House provided.

It was not clear whether the White House was trying to take advantage of a possible shutdown to advance President Donald Trump’s push to slash the federal workforce, or whether it was a negotiating tactic to force Democrats to agree to pass the Republicans’ funding legislation.

“This is an attempt at intimidation,” Senate Democratic leader Chuck Schumer said in a statement late Wednesday. “Donald Trump has been firing federal workers since Day One – not to govern, but to scare.”

He predicted any firings will be overturned in court, as others have been.

Agencies were told to submit their proposed reduction-in-force plans to the OMB and to issue notices to employees.

The OMB memo was earlier reported by Politico.

Trump Cancelled Meeting With Democrats

Trump on Tuesday scrapped a meeting with top congressional Democratic leaders to discuss government funding, raising the risk of a partial government shutdown next week. Republicans and Democrats have blamed each other for the impasse.

Upon taking office in January, Trump launched a campaign to downsize the 2.4 million-member federal civilian workforce, which he says is bloated and inefficient.

Roughly 300,000 federal civilian workers will have left their jobs by the end of 2025, Office of Personnel Management Director Scott Kupor said in August.

About 154,000 of those employees accepted a buyout and are slated to drop off the U.S. government’s payroll on September 30, the last day of the federal government’s fiscal year. That date is also the deadline for Trump and Congress to reach an agreement on federal spending to avert a shutdown.

(With inputs from Reuters)

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