US layoffs: White House orders agencies for mass firing plans ahead of shutdown

In a dramatic escalation of federal shutdown preparations, the White House is reportedly ordering agencies to develop reduction-in-force (RIF) plans that could lead to permanent dismissals of federal employees. The memo, expected from the Office of Management and Budget (OMB), also signals that the administration is treating a funding lapse not merely as a temporary disruption, but as a possible opportunity to shrink the size of government.

The White House has not publicly addressed the report, which indicates mass layoffs of federal employees across America.

According to the Politico report, the OMB memo will instruct agencies to identify specific roles and personnel eligible for termination, prepare justification documents, and draft proposals to overhaul agency staffing in the event of a shutdown.


Reuters confirms that the directive would go beyond standard shutdown planning, which historically has relied on furloughs and temporary reductions. This time, agencies may be asked to frame how they would permanently reduce the workforce if funding is cut off.

The backdrop to this directive is a rapidly approaching shutdown date: September 30, 2025. With no full-year funding bill yet approved, both sides of Congress are scrambling for last-minute solutions.

The context has already turned volatile. On September 23, President Donald Trump canceled a scheduled meeting with Democratic congressional leaders, one that had been aimed at breaking the stalemate.

Democratic leaders have responded with sharp criticism. Senate Minority Leader Chuck Schumer insisted Republicans have “the responsibility” to push a deal forward, accusing Trump of disengagement. Meanwhile, House Minority Leader Hakeem Jeffries put forward a strict condition: no Democratic support without a binding health care component in the funding package.

The reported RIF plans represent a major break from past shutdown protocols. Typically, federal employees are furloughed temporarily and return to their jobs once funding is restored. Permanent reductions, however, would trigger complex legal and procedural battles, as civil service rules guarantee notice periods, appeals, and protections for career staff. Federal employee unions are already signaling that any attempt to use the shutdown as a vehicle for mass firings would be met with immediate legal challenges.

The fact that the White House is preparing for structural downsizing—not merely short-term cuts—suggests it is bracing for a protracted funding impasse. But until the shutdown actually happens, those plans may remain theoretical.