White House signals potential federal layoffs as OMB cancels $8B in climate projects amid shutdown
Amid the government shutdown, White House and OMB officials have signaled imminent federal workforce cuts — OMB Director Russ Vought told House Republicans layoffs could begin “in a day or two,” and Vice President J.D. Vance warned they could be permanent, while the administration has described the funding lapse as an opportunity to reshape the federal government. OMB also announced roughly $8 billion in cancellations of green‑energy/climate projects, prompting legal challenges from federal employee unions and criticism that the moves are being used for political and personnel restructuring.
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🔍 Key Facts
- The White House and President Trump have framed the shutdown as an opportunity to 'slim down' the federal government and make 'irreversible' personnel and program cuts.
- The administration explicitly warned that some federal workers 'will be laid off' and described layoffs as 'imminent'; OMB Director Russ Vought told House GOP lawmakers layoffs could begin 'in the next day or two' and Vice President J.D. Vance warned they could be permanent.
- About 750,000 federal workers are expected to go without paychecks while the shutdown continues.
- Under the Antideficiency Act, discretion over agency operations during the funding lapse concentrates with the White House and OMB, enabling OMB-directed actions during the shutdown.
- OMB Director Russ Vought announced (and in a tweet named specific states) that roughly $8 billion in green‑energy/climate funding has been canceled as a result of the shutdown.
- Federal employee unions have filed legal challenges to an OMB memo that prepares agencies for layoffs during the shutdown.
- Reporters and critics (citing AP/ABC) say the administration is using the shutdown to reshape the federal workforce and to punish detractors, and operational impacts are already visible—e.g., a SNAP applicant, Carlos Hernandez, found a local office closed while trying to renew benefits.
📍 Contextual Background
- A continuing resolution (CR) is a temporary funding measure used by the U.S. Congress to keep federal agencies operating while House and Senate negotiators complete annual appropriations for a fiscal year.
📰 Sources (6)
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New information:
- NPR attributes the $8 billion cancellation directly to OMB Director Russ Vought.
- NPR reports Vice President J.D. Vance publicly warning that federal workforce layoffs will occur if the shutdown continues.
- Anecdotal operational impact: a named SNAP applicant, Carlos Hernandez, found a SNAP office closed while trying to renew benefits.
Furloughs, closures and mass firings threats: What's next in the shutdown fight
New information:
- Vice President J.D. Vance explicitly warned that layoffs could be permanent, not just temporary furloughs.
- Russ Vought’s tweet naming specific states and characterizing roughly $8 billion in green‑energy funding as canceled (tweet language quoted in article).
- Reporting that federal employees' unions have filed suit challenging the OMB memo that prepares agencies for layoffs during a shutdown (legal challenge referenced).
Trump uses government shutdown to dole out firings and political punishment
New information:
- Reported detail that OMB Director Russ Vought, in a private call with House GOP lawmakers, said layoffs could begin 'in the next day or two'
- Explicit White House quote and attribution that layoffs are being discussed as 'irreversible' cuts and that Leavitt characterized layoffs as 'imminent'
- Framing by AP that the administration is using the shutdown to 'reshape the federal workforce and punish detractors,' tying personnel actions to political objectives
White House says federal layoffs are "imminent" amid government shutdown
New information:
- CBS reports the White House explicitly saying some federal workers 'will be laid off' amid the shutdown.
- CBS reiterates the commonly cited figure that approximately 750,000 federal workers will not receive a paycheck while the shutdown continues.
- Confirms the timing as day one of the government shutdown (Wednesday) and that the White House made the statement contemporaneously.
Here's what Trump wants to do to reshape the federal government during the shutdown
New information:
- Direct Trump quotes framing the shutdown as an opportunity to make 'irreversible' personnel and program cuts.
- Reporting that the White House is underscoring it did not want the shutdown but sees potential to 'slim down' the federal government.
- Explicit contextualization of the Antideficiency Act as concentrating discretion with the White House and OMB during a funding lapse.