White House Budget Office Threatens Mass Firings if Government Shuts Down

Memo outlines permanent cuts, intensifying uncertainty for thousands of public servants

Thu Sep 25 2025
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WASHINGTON: The White House has directed federal departments to prepare for large-scale redundancies of government employees should a shutdown occur next week.

In a memo released, the Office of Management and Budget (OMB) stated that departments should consider a reduction in force for federal programmes whose funding is set to lapse next week, is not otherwise covered, and is “not consistent with the President’s priorities.”

This would mark a far more forceful action compared to previous shutdowns, during which non-essential government workers were furloughed but returned to their roles once Congress passed spending legislation, reports AP News.

A reduction in force would not only involve laying off employees but also abolishing their positions entirely. This would represent yet another major disruption to a federal workforce that has already experienced significant rounds of cuts earlier this year, driven by initiatives from the Department of Government Efficiency and other elements of the Trump administration.

Minimal number of employees

Once any possible government shutdown concludes, departments are instructed to revise their reduction-in-force strategies “as needed to retain the minimal number of employees necessary to carry out statutory functions,” according to the memo.

This move by the OMB substantially raises the stakes of a potential shutdown next week and increases pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. Both leaders have maintained near-total Democratic opposition to a clean funding bill supported by President Donald Trump and Congressional Republicans, which would keep the government running for a further seven weeks.

The OMB mentioned it had its first planning call with federal departments earlier in the week to coordinate shutdown preparations. The budget office plays a central role in managing shutdowns, especially through advance planning.

Shutdown contingency plans

Previous administrations have published shutdown contingency plans on the OMB’s website—highlighting which staff would remain at work and which would be furloughed—but no such plans have yet been made public in this case.

According to the memo, congressional Democrats are refusing to back a clean funding bill “due to their partisan demands,” which include extending enhanced health insurance subsidies due to expire at year’s end, and reversing cuts to Medicaid that were part of the Republicans’ major tax and spending legislation.

“As such, it has never been more important for the Administration to be prepared for a shutdown if the Democrats choose to pursue one,” the memo states, also noting that the GOP’s key legislation, a wide-ranging tax and border spending bill, provides “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.”

The OMB added that it had asked all departments to submit their shutdown contingency plans by 1 August.

“OMB has received many, but not all, of your submissions,” the memo continues. “Please send us your updated lapse plans ASAP.”

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