Trump administration prepares for mass layoffs if government shuts down

Spread the love

With only six days until the federal government shuts down, Republicans and Democrats have yet to secure a funding deal – and the Trump administration is already planning on how to make the most of it.

In a leaked memo, the Office of Management and Budget outlines plans for federal agencies that would run out of funding during a government shutdown to “use this opportunity” to consider permanently eliminating certain positions in federal programs, projects, and activities “not consistent with the President’s priorities,” consistent with applicable law.

“[W]e must continue our planning efforts in the event Democrats decide to shut down the government,” the memo reads.

“Once fiscal year 2026 appropriations are enacted, agencies should revise their RIFs [Reduction in Forces] as needed to retain the minimal number of employees necessary to carry out statutory functions,” it added.

The OMB’s plan builds on the Trump administration’s efforts during the past nine months to reduce the size and scope of the federal government. The Office of the Director of National Intelligence recently announced it will cut 40% of its workforce, the State Department has planned a 15% Reduction in Force, and the Department of Education will soon cut 1,400 employees.

Senate Majority Leader Chuck Schumer, D-N.Y., called the memo “an attempt at intimidation” and refused to back down from his plan to force a government shutdown if Republicans don’t accept Democrats’ funding demands.

While Republicans had introduced a clean Continuing Resolution that simply extends existing federal funding levels until Nov. 21 and provides extra security for lawmakers, Democratic appropriators came out with a short-term CR that includes healthcare-related policy rides costing up to $1.4 trillion.

Republicans’ CR already passed the House, but at least seven Democratic votes are needed for it to pass the Senate. Senators failed to pass either Republicans’ or Democrats’ funding stopgap options before recessing Friday, meaning lawmakers will have less than 48 hours to come to an agreement once they return.

Both sides are shifting the blame of a potential shutdown. Democrats have accused Republicans of ignoring rising healthcare costs and refusing to engage in negotiations. President Donald Trump cancelled a meeting with Democratic leaders Tuesday, saying no meeting “could possibly be productive” given their demands.

House Appropriations Committee Chair Tom Cole, R-Okla., countered that Democrats’ CR amounts to “a ransom note.”

“House Republicans acted and passed a clean resolution to keep the government open. In contrast, Democrats are demanding extraneous provisions and more than $1 trillion in new spending for just four weeks of government funding,” Cole said in a statement Thursday. “That’s not a negotiation – it’s extortion.”

As of Thursday, political markets are betting there is a 75% risk of a shutdown.

Leave a Comment





Latest News Stories

Everyday Economics: Housing market and Fed policy in focus in the week ahead

Everyday Economics: Housing market and Fed policy in focus in the week ahead

By Orphe DivounguyThe Center Square This week brings crucial updates on America's housing market struggles and hints about where interest rates might head next. Housing Data Dump Several major housing...
Businesses brace for new tax challenges amid global tariff focus

Businesses brace for new tax challenges amid global tariff focus

By Brett RowlandThe Center Square U.S. businesses and their partners across the globe are looking to make sure they comply with the highest import duties in decades amid a worldwide...
Casey Rotary Logo.2

Joyce and Gary Shore Joyce Shore presented the program on Tuesday at the Rotary Club’s weekly meeting at Richards Farm. She and her husband, Gary, a...
Illinois takes over health insurance marketplace in 2026 amid skepticism

Illinois takes over health insurance marketplace in 2026 amid skepticism

By Catrina Barker | The Center Square contributorThe Center Square (The Center Square) – Illinois will fully take over operation of its health insurance marketplace in 2026, moving away from...
WATCH: IL state reps challenge IEMA-OHS responses to local agencies

WATCH: IL state reps challenge IEMA-OHS responses to local agencies

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – Illinois Emergency Management Agency and Office of Homeland Security officials are promising to be more responsive to...
Meeting Briefs

Meeting Summary and Briefs: Casey Township Library Board of Trustees for June 26, 2025

Casey Township Library Board of Trustees Meeting | June 26, 2025 The Casey Township Library Board of Trustees confronted a significant infrastructure expense and made a key financial adjustment at...
Judge expands restraining order against 'Beto' O’Rourke, adds ActBlue

Judge expands restraining order against ‘Beto’ O’Rourke, adds ActBlue

By Bethany BlankleyThe Center Square A judge has expanded a temporary restraining order against former U.S. Rep. Robert (Beto) O’Rourke and his organization, Powered by People, as well as ActBlue...
Reversing Biden’s precedent, students complete FAFSA in minutes at beta-testing event

Reversing Biden’s precedent, students complete FAFSA in minutes at beta-testing event

By Tate MillerThe Center Square President Donald Trump’s Department of Education is working to restore the student aid FAFSA form after the Biden administration made what should be a couple-minute...
Trump, Zelenskyy to meet Monday in steps toward peace with Russia

Trump, Zelenskyy to meet Monday in steps toward peace with Russia

By Sarah Roderick-FitchThe Center Square Following a “successful” meeting in Alaska with Russian President Vladimir Putin, President Donald Trump said he is going straight for a “peace agreement” in a...
Casey Library.3

Casey Library Reports High Turnout for Summer Reading and Imagination Library Programs

Casey Township Library Board of Trustees Meeting | June 26, 2025 Article Summary: The Casey Township Library celebrated strong community engagement in its recent programs, highlighting a well-attended "Level Up"...
Possible 'agreement' reached in Trump-Putin meeting; more discussion likely

Possible ‘agreement’ reached in Trump-Putin meeting; more discussion likely

By Morgan SweeneyThe Center Square It appears an “agreement” was reached in the Friday meeting between Russian President Vladimir Putin and American President Donald Trump, but the nature of that...
WATCH: Gun rights supporters celebrate 9th Circuit’s ruling against CA gun rationing law

WATCH: Gun rights supporters celebrate 9th Circuit’s ruling against CA gun rationing law

By Carleen JohnsonThe Center Square Gun rights supporters are celebrating what they call a significant victory after the 9th Circuit Court of Appeals issued a mandate on Thursday overturning California’s...
Feds sue California over emission standards for trucks

Feds sue California over emission standards for trucks

By Jamie ParsonsThe Center Square The U.S. Department of Justice is suing California to stop what it calls “unlawful” emission standards for heavy-duty trucks. The California Air Resources Board is...
Illinois quick hits: 'Lawsuit inferno' bill takes effect after Pritzker signed 267 measures Friday

Illinois quick hits: ‘Lawsuit inferno’ bill takes effect after Pritzker signed 267 measures Friday

By Jim Talamonti | The Center SquareThe Center Square 'Lawsuit inferno' bill takes effect Gov. J.B. Pritzker has signed legislation which led the American Tort Reform Association to label Illinois...
WATCH: UW-authored study on surgery times contradicts CMS basis for reimbursement cuts

WATCH: UW-authored study on surgery times contradicts CMS basis for reimbursement cuts

By Carleen JohnsonThe Center Square New findings published in the Journal of the American College of Surgeons contradict the Centers for Medicare & Medicaid Services, or CMS, claim that surgery...