Politics & Power

In a bold escalation of its budget standoff, the White House has instructed federal agencies to prepare for widespread layoffs in the event of a government shutdown — a far more aggressive posture than in past fiscal impasses.

What’s happening

• An internal memo from the Office of Management and Budget (OMB) directs agencies to develop “reduction in force” plans for programs that will lose funding — unless they align with the president’s priorities.
• Historically, non-essential federal workers were merely furloughed during shutdowns and rehired once funding resumed. This time, the White House is signaling that many jobs may be permanently cut.
• The memo instructs agencies to retain only the “minimal number of employees” necessary to fulfill legally mandated functions.

Political response & stakes

• House Republicans have pushed for a short-term continuing resolution (CR) to keep the government operating for another seven weeks — without negotiating additional health-care or social policy changes.
• Democratic leaders have denounced the White House memo as intimidation. One leader vowed: “We will not be intimidated by your threat to engage in mass firings.”
• Analysts warn that mass firings would deepen instability in a federal workforce already weakened by earlier cuts, including those tied to recent “efficiency” drives.
• Some previously terminated workers — especially in the General Services Administration — are being asked to return to duty, with deadlines set for early October.

What to watch

• Will Congress pass a stopgap funding bill before the deadline, or let the shutdown begin?
• If a shutdown proceeds, can legal challenges or political pressure halt or reverse large-scale firings?
• How will federal personnel and essential services cope if agencies are forced to slim down staffing drastically?
• What messaging pivot will the White House employ if this strategy backfires politically or legally?