White House plans permanent job cuts in aggressive shutdown move

The White House has instructed federal agencies to prepare for widespread dismissals of staff should a government shutdown occur next week, a move that signals a far more aggressive stance than in previous impasses.

A memo issued by the Office of Management and Budget (OMB) Wednesday night advised agencies to contemplate a “reduction in force” for federal programmes whose funding is set to expire, is not otherwise secured, and is deemed “not consistent with the President’s priorities.”

This marks a significantly more aggressive approach compared to previous government shutdowns, when non-essential federal employees were typically furloughed, only to return to their posts once Congress approved spending.

Unlike a furlough, a “reduction in force” would not merely lay off staff but permanently eliminate their positions.

This could cause further disruption to a federal workforce already subjected to substantial cuts this year, stemming from initiatives by the Department of Government Efficiency (DOGE) and other parts of the Trump administration.

Should a shutdown conclude, agencies are instructed to revise their “reduction in force” plans “as needed to retain the minimal number of employees necessary to carry out statutory functions,” the memo states, a document first brought to light by Politico.

This move from OMB significantly increases the consequences of a potential government shutdown next week and escalates pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. They have kept nearly all Democratic lawmakers united against a clean funding bill pushed by President Donald Trump and congressional Republicans that would keep the federal government operating for seven more weeks.

OMB noted that it held its first planning call with other federal agencies earlier this week to plan for a shutdown.

The budget office plays point in managing federal government shutdowns, particularly planning for them ahead of time. Past budget offices have also posted shutdown contingency plans — which would outline which agency workers would stay on the job during a government shutdown and which would be furloughed — on its website, but this one has not.

The memo noted that congressional Democrats are refusing to support a clean government funding bill “due to their partisan demands,” which include an extension of enhanced health insurance subsidies set to expire at the end of the year, plus a reversal of Medicaid cuts that were included in Republicans’ big tax and spending law.

“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 reads.

It also notes that the GOP’s signature law, a major tax and border spending package, gives “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.”

OMB noted that it had asked all agencies to submit their plans in case of a government shutdown by Aug. 1.

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