White House Tells Agencies to Draft Mass-Firing Plans in Event of Shutdown

The White House’s budget office told federal agencies to prepare for a possible government shutdown next week by drafting plans to reduce staff through a reduction in force for programs whose funding would lapse, are not funded, and are not aligned with the President’s priorities.

The memo, released to staff Wednesday night, says a reduction in force would not only lay off employees but eliminate their positions, a step far more aggressive than in previous shutdowns when furloughs were common for workers deemed nonessential and later returned to their jobs once spending was approved. Agencies are instructed to revise their lapse plans after any shutdown to retain only the minimal number of employees necessary to carry out statutory functions.

The memo was first reported by Politico and significantly raises the stakes in the looming funding fight. It adds to pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries as they push against a clean funding bill that would keep the government open for seven weeks while seeking concessions on health care and other priorities. In statements issued shortly after the memo’s release, the two Democrats showed no signs of bending.

“We will not be intimidated by your threat to engage in mass firings,” Jeffries wrote on X. “Get lost.” He also labeled Russ Vought, the head of the Office of Management and Budget, a “malignant political hack.” Schumer described the memo as an “attempt at intimidation” and predicted that any unnecessary firings would be overturned in court or the workers would be rehired if the shutdown ends.

The memo notes that OMB held its first planning call with other federal agencies earlier this week to prepare for a shutdown. It also states that while past budget offices have posted shutdown contingency plans outlining which workers would stay on the job and which would be furloughed, this memo’s plan has not been published on the website. It adds that congressional Democrats are opposing a clean funding bill “due to their partisan demands,” including an extension of enhanced health insurance subsidies set to expire at year’s end, and a reversal of Medicaid cuts included in Republicans’ 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, while noting 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 said it had asked all agencies to submit lapse plans by Aug. 1 and that it had received many, but not all, submissions, urging agencies to send updated lapse plans ASAP.

The administration’s signaling comes as talks among lawmakers show little progress toward a bipartisan spending package, with Democrats insisting on policy changes tied to health care and other protections before they would support a continuing resolution. The memo’s emphasis on staff reductions reveals how far the administration is prepared to go to pressure lawmakers, even as political tensions intensify ahead of potential funding gaps.