White House prepares for mass layoffs in case of government shutdown

The Trump administration has instructed federal agencies to prepare for potential mass layoffs in the event of a government shutdown on October 1, when current funding expires.

A memo from the White House Office of Management and Budget (OMB) directs agencies to plan for firing employees working on programs not funded by law or not aligned with the president’s priorities.

Unlike past shutdowns, when furloughed workers returned after funding resumed, this directive warns employees they could lose their jobs permanently.

Impact on the federal workforce
The memo stresses that agencies must revise staffing plans after a shutdown to retain only the minimum number of employees legally required to operate. 

It also highlights that programs supported by the One Big Beautiful Bill Act, passed in July, will continue running. That law boosted funding for defense and immigration enforcement, while programs lacking mandatory appropriations face cuts.

Political standoff
The directive adds pressure on Democrats, who refuse to support a GOP-backed funding extension through November 21 unless health care priorities are addressed.

Both parties remain at an impasse, with another Senate vote expected on Monday.