Government Shutdown Threat: White House Orders Agencies to Prepare for Mass Layoffs as Deadline Nears
Government Shutdown Threat: White House Orders Agencies to Prepare for Mass Layoffs as Deadline Nears
As the September 30 deadline for government funding rapidly approaches, the White House’s Office of Management and Budget (OMB) issued a stark warning to federal agencies on Wednesday night: prepare for potential mass layoffs. This directive significantly escalates tensions as Congress races against the clock to pass a funding bill and avert a government shutdown scheduled for next Wednesday, October 1.
The memo, obtained by CBS News, instructs agencies to consider ‘reduction-in-force’ (RIF) notices for employees whose programs rely on discretionary funding ending October 1, or those deemed ‘not consistent with the President’s priorities.’ This move goes beyond typical furlough notices, suggesting permanent job losses, a rare occurrence during government shutdowns.
While critical services like Social Security, Medicare, veterans’ benefits, and military operations are expected to continue, an OMB official expressed hope that congressional Democrats would not ‘trigger a shutdown’ and that a ‘clean CR’ (continuing resolution) would be enacted to prevent a spending lapse.
The prospect of mass firings has drawn sharp criticism. Bobby Kogan, a former OMB official, called it ‘an action of enormous self-harm’ and ‘extortive.’ Senate Minority Leader Chuck Schumer denounced the memo as ‘an attempt at intimidation,’ while House Minority Leader Hakeem Jeffries vowed Democrats ‘will not be intimidated.’
The legislative path forward remains gridlocked. A Republican-backed short-term funding bill passed by the House has failed to secure the necessary 60 votes in the Senate. Democrats are seeking concessions, including Medicaid cut rollbacks and extended health insurance tax credits. President Trump further complicated negotiations on Tuesday by canceling a planned meeting with Democratic congressional leaders, labeling their demands ‘unserious and ridiculous’ on Truth Social. With the fiscal year ending on Tuesday, September 30, the nation faces the imminent threat of a government shutdown.
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