White House orders agencies to prepare for mass layoffs if government shuts down

A memo from the White House Office of Management and Budget has ordered federal agencies to prepare plans for mass firings in the event of a potential government shutdown. These firings would be permanent, differing from standard furloughs seen during shutdowns.

The memo sent out ahead of its Wednesday night release to agencies, stated, "Over the past 10 fiscal years, Congress has consistently passed Continuing Resolutions (CRs) on or by September 30 on a bipartisan basis. Unfortunately, congressional Democrats are signaling that they intend to break this bipartisan trend and shut down the government in the coming days over a series of insane demands, including $1 trillion in new spending."

The memo noted that while the House has passed a continuing resolution that would fund the government at current levels through November 21, "congressional Democrats are currently blocking this clean CR due to their partisan demands."

"Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown, and we must continue our planning efforts in the event Democrats decide to shut down the government. If Congress successfully passes a clean CR prior to September 30, the additional steps outlined in this email will not be necessary."

Reduction in force notices will be given to all employees working in relevant programs, projects, or activities "regardless of whether the employee is excepted for furloughed during the lapse in appropriations," and the notices will be in addition to any furlough notices given.

"Once fiscal year 2026 appropriations are enacted, agencies should revise their RIFs as needed to retain the minimal number of employees necessary to carry out statutory functions. Any proposed RIF plan must be submitted to OMB."