Federal Layoffs Imminent as Government Shutdown Begins, Legal Battle Erupts
Federal Layoffs Imminent as Government Shutdown Begins, Legal Battle Erupts
As the federal government entered its second day of a shutdown on October 2nd, the Trump administration has escalated tensions by warning of imminent federal employee layoffs, known as Reductions in Force (RIFs). This aggressive move marks a significant departure from past shutdowns, where furloughs were typically temporary and accompanied by retroactive pay.
White House Press Secretary Karoline Leavitt confirmed that RIFs are “imminent” and will occur “very soon.” This echoes Vice President JD Vance’s statement on Wednesday that layoffs would be necessary if the shutdown “drags on for another few days, or, God forbid, another few weeks.” OMB Director Russell Vought reportedly informed House Republicans that agency RIFs could commence “in a day or two.” The Congressional Budget Office estimates that approximately 750,000 federal employees are currently furloughed, costing the government an estimated $400 million daily.
The rapid pursuit of RIFs has ignited a fierce legal and political backlash. Two major federal unions, the American Federation of Government Employees (AFGE) and the American Federation of State, County and Municipal Employees (AFSCME), filed a lawsuit yesterday, Tuesday, challenging the legality of the OMB’s directive to conduct RIFs during a shutdown. They argue that such actions are not permitted functions under federal law. Congressional Democrats, including Rep. James Walkinshaw (D-Va.), have also questioned the administration’s authority, alleging violations of the Antideficiency Act.
Despite the administration’s aggressive stance, federal workforce experts highlight that the RIF process is complex, typically taking months due to requirements for prioritizing employees based on tenure, veterans’ preference, and performance. The Office of Personnel Management (OPM) has clarified that while RIF-related work is deemed “excepted” during the shutdown, any impacted federal employees must still receive a 60-day notice, making them eligible for retroactive pay.
Notably, the U.S. Patent and Trademark Office (USPTO), a fee-funded agency that remains open during shutdowns, already issued layoff notices to about 1% of its workforce on Wednesday. This action is particularly puzzling given USPTO’s funding model, which seemingly exempts it from OMB’s criteria for RIFs. The threat of these new layoffs follows closely on the heels of 154,000 federal employees officially separating from government yesterday after opting into a deferred resignation program (DRP) earlier this year, adding to what Partnership for Public Service President and CEO Max Stier calls “especially high stakes” for the federal workforce.
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