US budget officials demand federal layoff plans ahead of shutdown
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The US Office of Management and Budget has instructed federal agencies to prepare for permanent layoffs of non-essential workers if a government shutdown occurs next week.
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A large group of police arrive at the Capitol, Thursday, Jan. 6, 2022, in Washington (AP Photo/Evan Vucci)
The US Office of Management and Budget (OMB) has instructed federal agencies to draft plans for potential mass firings of US federal workers in the event of a government shutdown next week.
In a memo released Wednesday night, OMB said agencies should prepare for a possible reduction in force affecting programs that would lose funding, are not otherwise financed, and are “not consistent with the President’s priorities.”
This marks a significant departure from previous shutdown procedures, where furloughed workers were typically reinstated once funding was restored.
Unlike furloughs, a reduction in force would result in permanent layoffs and the elimination of positions, adding another wave of disruption to a federal workforce already under pressure from cuts pursued by the Department of Government Efficiency and other Trump administration initiatives.
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Shutdown would bring severe cuts to US federal workers
According to the memo, first reported by Politico, even after a shutdown ends, agencies would be expected to revise their plans “as needed to retain the minimal number of employees necessary to carry out statutory functions.”
The warning significantly raises the stakes ahead of a looming budget impasse and puts added pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.
Both leaders have maintained firm opposition to a clean funding bill pushed by US President Donald Trump and Republican lawmakers, which would extend government operations for seven weeks. In exchange, Democrats have demanded urgent healthcare reforms.
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Neither Democratic leader showed signs of backing down following the release of the memo.
“We will not be intimidated by your threat to engage in mass firings,” Jeffries posted on X. He also referred to OMB Director Russ Vought as a “malignant political hack.”
Schumer described the directive as an “attempt at intimidation,” predicting the layoffs would either be reversed in court or force the administration to rehire affected employees.
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OMB acknowledged it had already held its first shutdown planning call with federal agencies earlier this week, although it has not yet posted updated contingency plans on its website. These plans typically outline which government functions would remain active and which would halt during a funding lapse.
The memo blames Democrats for the potential shutdown, citing their refusal to support the current GOP-backed funding bill due to demands such as extending enhanced health insurance subsidies and reversing Medicaid cuts that were part of the Republican tax and spending package.
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The document emphasized that the law passed under the Trump administration provides “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.”
Political stakes rise ahead of shutdown deadline
OMB said all agencies were initially asked to submit shutdown plans by August 1. While many have complied, “OMB has received many, but not all, of your submissions,” the memo noted. “Please send us your updated lapse plans ASAP.”
With the deadline approaching, the directive reflects heightened political tension in the United States as the impasse over the US budget continues. The prospect of permanent job losses among US federal workers could reshape both the political and operational landscape of the federal government for months to come.
