'Not consistent with President's priorities': White House prepares for mass federal worker layoffs; stares at potential shutdown

The White House has instructed federal agencies to prepare for large-scale firings of employees if the government shuts down next week, a move that marks a more aggressive approach than in previous shutdowns.

In a memo released Wednesday night, the Office of Management and Budget (OMB) said agencies should plan for a reduction in force for federal programs whose funding would lapse, are not otherwise funded, and are “not consistent with the President's priorities .” Unlike typical shutdowns where non-essential workers are furloughed but later reinstated, a reduction in force would permanently eliminate positions, intensifying disruption to a federal workforce already affected by major cuts this year.

The memo directs agencies to revise their plans once a shutdown ends to “retain the minimal number of employees necessary to carry out statutory functions,” according to Politico, which first reported the memo.

The OMB move escalates pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. Both Democrats have resisted a clean funding bill proposed by President Donald Trump and congressional Republicans, which would keep the government operating for seven more weeks, demanding immediate improvements to health care in exchange for their support.

In response to the memo, Jeffries wrote on X: “We will not be intimidated by your threat to engage in mass firings . Get lost.” He also called OMB Director Russ Vought a “malignant political hack.” Schumer described the memo as an “attempt at intimidation” and predicted that “unnecessary firings will either be overturned in court or the administration will end up hiring the workers back.”

OMB said it held a planning call with federal agencies earlier this week to prepare for a shutdown. While past budget offices have posted shutdown contingency plans online, this one has not. The memo also criticised congressional Democrats for refusing to support a clean funding bill “due to their partisan demands,” which include extending enhanced health insurance subsidies and reversing Medicaid cuts from the Republicans’ tax and spending law.

The memo concluded that the Trump administration has “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted” and asked agencies to submit their shutdown plans by August 1. “OMB has received many, but not all, of your submissions. Please send us your updated lapse plans ASAP,” it added.