Trump threatens mass federal layoffs as shutdown begins; OMB told agencies to plan RIFs
OMB Director Russ Vought issued a memo directing agencies to prepare reduction‑in‑force (RIF) layoff plans — in addition to furlough notices — ahead of a possible funding lapse, saying agencies should target programs “not consistent with the President’s priorities” (citing items like foreign aid, EV‑charging grants and the Corporation for Public Broadcasting) while continuing core functions such as Social Security, Medicare, veterans’ benefits, military operations, law enforcement, border security and air‑traffic control. As the government entered a partial shutdown, the Trump administration threatened “irreversible” mass layoffs and a deferred‑resignation program, OPM issued guidance allowing staff to administer RIFs during the lapse, and estimates of affected workers ranged from hundreds of thousands furloughed now to as many as 2.3 million potentially impacted — a move Democrats called intimidation and which raises legal and operational questions.
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🔍 Key Facts
- The White House Office of Management and Budget (OMB), in a memo authored by Director Russ Vought, instructed federal agencies to draw up reduction‑in‑force (RIF) — i.e., layoff — plans ahead of a possible funding lapse after the Sept. 30, 2025 deadline and urged support for a 'clean' continuing resolution (H.R. 5371) to extend funding through Nov. 21, 2025.
- The memo tells agencies to consider issuing RIF notices 'in addition to' furlough notices and to plan permanent workforce reductions for programs 'not consistent with the President's priorities'; OPM guidance was updated to allow agencies to direct employees to perform work necessary to administer the RIF process during the lapse (including working without pay).
- OMB/Memo and administration officials identified programs that would continue despite a lapse — including Social Security, Medicare, veterans' benefits, military operations, law enforcement, ICE, CBP, and air traffic control — while saying funding for border security, immigration enforcement and national defense would be spared.
- News coverage named specific spending targets the administration is prepared to cut if funding lapses, including foreign aid, electric‑vehicle charging station spending, and funding for the Corporation for Public Broadcasting; the memo also blamed Senate Democrats for blocking the clean CR with what it called 'insane demands, including $1 trillion in new spending.'
- Reports and estimates of the potential scale vary: one estimate cited about 2.3 million federal employees could be affected; contemporaneous figures say more than half a million workers were furloughed when the shutdown began, OPM estimated more than 300,000 federal employees could be gone by year end, roughly 100,000 accepted early‑exit offers, and the administration has discussed a 'deferred resignation' program removing more than 100,000 workers — President Trump publicly said 'We may do a lot.'
- The federal government entered a partial shutdown after the funding deadline passed; OMB directed agencies to execute orderly shutdown activities, and thousands of workers have been furloughed or ordered to work without pay as agencies implement contingency plans.
- The memo and threat of mass layoffs were framed by the White House as political pressure to force Democratic support for a stopgap; Democrats and some senators denounced the move as intimidation or 'mafia‑style blackmail,' Trump canceled a requested meeting with Democratic leaders, and the episode intensified an already fraught shutdown standoff in Congress.
📍 Contextual Background
- A Social Security Administration contingency plan published on Sept. 24 indicated that about 45,000 SSA employees (roughly 90% of the agency's workforce) would remain on the job during a government shutdown, while roughly 6,200 employees would be furloughed.
📊 Analysis & Commentary (2)
Dems’ shutdown nightmare
"A POLITICO Playbook opinion piece warns that a newly reported OMB memo — which instructs agencies to prepare RIF layoff plans if a shutdown occurs — represents a serious escalation by the White House to use a shutdown as leverage, and argues Democrats should treat the threat as real rather than dismiss it."
A line-in-the-sand moment
"A Politico Playbook analysis frames the OMB memo ordering agencies to prepare mass‑layoff (RIF) notices ahead of the Sept. 30 funding deadline as a deliberate, high‑stakes 'line in the sand' gambit by the White House — a risky bit of brinkmanship that weaponizes personnel planning to force concessions and could produce significant political and operational blowback."
📰 Sources (14)
Trump threatens mass layoffs as shutdown begins. Can he do that?
New information:
- Direct presidential quote threatening 'irreversible' workforce reductions and saying the shutdown lets the administration 'cut things that they like.'
- OPM updated guidance language quoted: agencies 'are authorized to direct employees to perform work necessary to administer the RIF process during the lapse in appropriations.'
- Contemporaneous workforce figures: 'more than half a million federal workers now furloughed' and an OPM estimate that 'more than 300,000' federal employees will be gone by year end; note ~100,000 accepted 'fork in the road' early‑exit offers.
Government shuts down after Congress deadlocks on spending deal
New information:
- Confirms the federal government has officially entered a partial shutdown after the midnight funding deadline passed.
- Reports OMB Director Russ Vought released a memo directing agencies to execute orderly shutdown activities and that thousands of workers will be furloughed or work without pay.
- Provides political context: House had passed a CR on Sept. 19 to extend funding to Nov. 21, but Democrats in the Senate blocked a short-term extension and the Senate remained deadlocked.
Shutdown fight casts a shadow over jobs as Trump prepares for largest federal resignation in US history
New information:
- Administration preparing a 'deferred resignation program' that would remove more than 100,000 federal employees (distinct from standard furloughs/RIFs).
- President Trump publicly said 'We may do a lot' when asked how many federal workers could be laid off, tying the program to the shutdown standoff.
- Reports that BLS commissioner Erika McEntarfer was fired after agency revisions to job‑growth data (May/June revisions downward) are cited in the context of the weak jobs readings.
A government shutdown looms. This time, the impact could last.
New information:
- Identifies and frames the immediate political standoff: Democrats refuse a short‑term deal and Senate leaders face limited leverage.
- Reports a scheduled White House meeting between President Trump and congressional leaders (Monday) tied to the shutdown negotiations.
- Provides on‑the‑record quotes from Senate Minority Leader Chuck Schumer and strategist Rodell Mollineau about the political dynamics and perceived trap.
- Connects the OMB memo threat to broader recent actions (Supreme Court decision allowing certain cuts to proceed) to explain Democratic frustration and context.
Transcript: Sen. Tim Kaine on "Face the Nation with Margaret Brennan," Sept. 28, 2025
New information:
- Sen. Kaine cited the scale of federal employment in Virginia — ~140,000 federal civilian workers — as a concrete measure of potential local impact from RIFs and shutdown planning.
- Kaine criticized the White House approach, saying the President is 'already doing' firings and urging that commitments made in any funding deal not be immediately rescinded.
Transcript: Sen. Rand Paul on "Face the Nation with Margaret Brennan," Sept. 28, 2025
New information:
- Sen. Rand Paul publicly quantified his objections to both major spending proposals, saying the Republican plan 'adds about $2 trillion' and the Democratic plan 'would add $3 trillion.'
- Paul reports a Senate vote on his alternative 'penny plan' last week with a roll call: 36 Republicans supported it, 16 opposed, and no Democrats supported it — new specific vote counts tied to a spending alternative.
- Paul asserts courts have repeatedly upheld presidential authority over executive‑branch hiring/firing, framing likely legal outcomes if the administration pursues RIFs during a shutdown.
Schumer, Democrats face heat for shifting stance on government shutdown threat
New information:
- Fox News piece reiterates the OMB memo's political impact by including Schumer's and Thune's recent quotes reacting to it and connecting it to the current debate over Democratic support for stopgap funding.
- Provides contemporaneous political pushback framing (claims of hypocrisy) not previously quoted in the OMB-focused story.
Democrats dismiss White House's shutdown layoff threat as "intimidation"
New information:
- Direct, attributable quotes from House Minority Leader Hakeem Jeffries denouncing the memo as intimidation: 'We will not be intimidated by Russ Vought, who's completely and totally out of control.'
- Direct statement attribution to Senate Minority Leader Chuck Schumer calling the memo 'an attempt at intimidation.'
- Political context details: Jeffries characterized the House GOP continuing resolution as 'dead on arrival' in the Senate and criticized House Republicans for leaving D.C.; noted President Trump canceled a requested meeting with Democratic leaders.
Read the full memo directing federal agencies to weigh mass layoffs if the government shuts down
New information:
- PBS obtained and published the full OMB memo sent to agency leadership and general counsels.
- The memo explicitly states that RIF (reduction‑in‑force) notices would be 'in addition to' furlough notices, meaning agencies could pursue permanent layoffs as well as temporary furloughs.
- The memo includes language blaming Democrats for inching toward a shutdown with 'insane demands' and instructs agencies to continue planning accordingly; PBS quotes the memo and includes context on negotiations and Schumer's response.
Senate progressive accuses Trump of ‘mafia-style blackmail’ in shutdown fight
New information:
- Sen. Chris Van Hollen publicly accused President Trump of 'mafia-style blackmail' in response to the OMB memo.
- Van Hollen explicitly compared the administration’s memo to earlier mass‑employment actions tied to Elon Musk and the Department of Government Efficiency and vowed to 'fight back with every tool we have.'
- Contextual link to canceled White House meeting efforts and continuing negotiations ahead of the Sept. 30 funding deadline (article underscores political friction).
White House threatens layoffs -- not furloughs -- if the government shuts down
New information:
- NPR obtained a copy of an OMB memo spelling out the administration's plan to issue 'reduction in force' notices rather than furloughs if a shutdown occurs.
- The reporting names specific program targets mentioned in coverage of the drive to cut spending: foreign aid, electric‑vehicle charging station spending, and funding for the Corporation for Public Broadcasting.
- The article notes President Trump canceled a planned meeting with Democratic leaders and includes a direct quote from Sen. Chuck Schumer calling the memo 'an attempt at intimidation.'
White House raises specter of mass firings if government shuts down
New information:
- Identifies OMB Director Russ Vought as the author and quotes his memo wording urging preparedness for a shutdown.
- Describes a two-track approach: programs funded in the 'one big beautiful bill' and those focused on border security, immigration enforcement and national defense would be spared.
- Frames the move as an escalation intended to pressure Democrats by 'daring' them not to support a stopgap — includes context with reactions from Schumer and Jeffries.
White House tells agencies to prepare for layoffs if government shuts down
New information:
- The memo explicitly instructs agencies to consider reduction-in-force (RIF) notices for programs 'not consistent with the President's priorities.'
- An OMB official named programs that would continue regardless of a shutdown: Social Security, Medicare, veterans' benefits, military operations, law enforcement, ICE, CBP, and air traffic control.
- CBS obtained the memo and notes it urges a 'clean CR' and frames the planning as contingent on Democrats not triggering a shutdown.
- The article includes reactions and quotations from a former OMB official (Bobby Kogan) and congressional leaders (Sen. Chuck Schumer and Rep. Hakeem Jeffries).
White House tells federal agencies to prepare layoff plans as government shutdown looms
New information:
- OMB issued internal guidance telling agencies to draw up RIF (layoff) plans ahead of a possible funding lapse after Sept. 30, 2025.
- Article cites an estimate that about 2.3 million federal employees could be affected if a shutdown occurs.
- The memo references H.R. 5371 (a clean continuing resolution) that the administration supports to extend funding through Nov. 21, 2025, and accuses Senate Democrats of blocking it with 'insane demands, including $1 trillion in new spending.'