White House Orders Agencies to Prepare Mass Layoffs if Shutdown Hits

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The White House has instructed federal agencies to prepare for sweeping layoffs if the government shuts down next week, a move that would go far beyond the furloughs seen in past funding lapses.

In a memo released Wednesday night, the Office of Management and Budget directed agencies to consider reductions in force for programs that would lose funding, are not otherwise financed, and do not align with the president’s priorities. Unlike furloughs, which temporarily sideline workers until funding resumes, reductions in force would permanently eliminate positions.

Such cuts would mark another major upheaval for a federal workforce already hit by significant downsizing this year under the Trump administration’s efficiency drive.

The memo instructed agencies to revise their plans after any shutdown ends, retaining only the minimum number of employees needed to carry out legally required functions.

The directive raises the stakes of a potential shutdown and intensifies pressure on Democratic leaders Chuck Schumer and Hakeem Jeffries, who have kept their caucus united against a short-term funding bill backed by President Donald Trump and congressional Republicans. That measure would extend government operations for seven weeks.

The budget office confirmed it held its first planning call with agencies earlier this week. While previous administrations have published detailed contingency plans outlining which workers would remain on duty and which would be furloughed, no such plans have been posted this time.

The memo accused Democrats of blocking a clean funding bill because of demands that include extending enhanced health insurance subsidies and reversing Medicaid cuts tied to the GOP’s tax and spending package. It argued that the administration must be ready for a shutdown if Democrats “choose to pursue one,” while noting that the Republican law provides resources to keep many of the president’s priorities running without interruption.

 

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