White House orders mass firing plans ahead of possible shutdown

The White House budget office has instructed federal agencies to prepare plans for mass layoffs should the government shut down next week.

According to a memo released Wednesday night by the Office of Management and Budget, agencies should prepare for a reduction in force for federal programs whose funding would lapse next week, would not be otherwise funded, and would be inconsistent with the President's priorities. A reduction in force would not only lay off employees but eliminate their positions, a move that would be more aggressive than in past shutdowns when nonessential workers were furloughed and later recalled when funding resumed. The memo also directs agencies to revise lapse plans after any shutdown ends as needed to retain the minimal number of employees necessary to carry out statutory functions.

The memo, first reported by Politico, notes that congressional Democrats are refusing to support a clean government funding bill due to partisan demands. As such, it states, it has never been more important for the Administration to be prepared for a shutdown if the Democrats choose to pursue one. The memo adds that the GOP's signature tax and border spending package provides ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.

OMB noted that its planning effort began with a call among agencies earlier this week to coordinate contingency plans for a potential shutdown. It also says that Senate and House Democrats have largely united against a clean funding bill pushed by President Donald Trump and congressional Republicans, who advocate advancing a seven-week funding extension tied to health and policy concessions.

The document emphasizes that Democrats refused to back a clean funding bill in part over demands including an extension of enhanced health insurance subsidies that expire at year’s end and a reversal of Medicaid cuts included in Republicans’ tax and spending legislation. It states, "As such, it has never been more important for the Administration to be prepared for a shutdown if the Democrats choose to pursue one." It also notes that the GOP package would provide "ample resources to ensure that many core Trump Administration priorities will continue uninterrupted."

By Aug. 1, agencies were asked to submit their lapse plans, and OMB said it had received many, but not all, submissions. The memo underscores a broader shift in contingency planning under the current administration and highlights how a potential shutdown could affect not only funding timelines but the structure of the federal workforce during a period of extended political standoff.

The move has intensified political pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, who have kept nearly all of their Democratic caucuses unified in opposition to the proposed funding approach. Jeffries responded to the memo in a post on X, saying, "We will not be intimidated by your threat to engage in mass firings. Get lost." Schumer described the memo as an "attempt at intimidation" and predicted the firings would either be overturned in court or that workers would be rehired once funding was restored.

Experts caution that the memo signals a stark retrieval of contingency options and raises questions about the practical impact on federal programs and employees if a shutdown occurs. As lawmakers continue to haggle over health subsidies and Medicaid protections, agencies are preparing for a range of scenarios, even as the administration argues that the GOP-inclusive package would keep core priorities running in the event of a lapse in funding.