For the first time in modern history, a White House memo has ordered federal agencies to brace for mass permanent layoffs if Congress fails to resolve the budget deadlock, signaling a seismic shift in how Washington handles government shutdowns and federal workforce reductions.
Story Snapshot
- The Trump administration’s OMB memo marks the first explicit directive for permanent federal layoffs during a shutdown.
- Roughly 154,000 federal workers face job loss starting September 30 if Congress does not pass a spending bill.
- The move is part of a broader conservative push to downsize what is seen as an inefficient, bloated bureaucracy.
- Democrats decry the memo as political intimidation, while legal challenges to mass layoffs loom.
Trump Administration Prepares for Permanent Job Cuts
The memo, issued by the White House’s Office of Management and Budget (OMB) on September 24, 2025, instructs federal agencies to prepare for a “reduction in force” (RIF), a formal term for permanent layoffs. According to a report from The Guardian, the memo states that agencies should plan for RIFs for programs whose funding would lapse and are “not consistent with the President’s priorities.” This directive represents a significant escalation from previous shutdowns, which have historically resulted in employees being furloughed and later receiving back pay.
The move is part of the administration’s broader push to downsize the federal workforce, which has already seen significant reductions. According to a report from the Partnership for Public Service, about 200,000 federal workers had already left their jobs by August 2025.
Breaking with Historical Precedent
In past government shutdowns, such as the 2013 and 2018-2019 events, non-essential employees were furloughed and returned to their jobs once Congress approved new funding. The OMB memo signals a new willingness to use a budget impasse as an opportunity for permanent federal workforce reductions. The memo also directs agencies to “retain the minimal number of employees necessary to carry out statutory functions” even after a shutdown is averted, according to a report from Government Executive. This language echoes a directive from earlier in the year which was temporarily blocked by a lower court but later upheld by the Supreme Court.
Potential Impact and Legal Challenges
If a shutdown occurs, it is estimated that approximately 154,000 federal workers could be affected, though official layoff notices have not been issued by most agencies. Democratic leaders have condemned the memo. House Minority Leader Hakeem Jeffries wrote on X, “We will not be intimidated by your threat to engage in mass firings. Get lost.” In a separate statement, Senate Minority Leader Chuck Schumer called the memo an “attempt at intimidation” and predicted the firings would “either be overturned in court or the administration will end up hiring the workers back.”
Legal experts have noted that while agencies have the authority to implement RIFs, the process must follow specific federal rules, including a 60-day written notice. Congressman Johnny Olszewski (D-MD) has introduced the Securing Assurance for Federal Employees (SAFE) Act, which would block the administration from carrying out mass layoffs and require reinstatement with back pay for anyone fired in violation of the law.
Sources:
White House warns of mass layoffs if government shutdown hits – CNN
White House Memo Sparks Federal Job Cuts as Shutdown Looms – Azat TV
White House memo outlines layoffs if shutdown occurs – Daily Fly
White House Trump layoffs OMB government shutdown – CBS News
White House Trump layoffs OMB government shutdown – CBS News
White House directs agencies to prepare for layoffs as shutdown deadline approaches – KPUA