White House tells federal agencies to prepare layoff plans as government shutdown looms
OMB memo orders potential reduction-in-force notices for nonessential programs if funding lapses; officials push for a clean continuing resolution to avert a lapse in funding.
The White House Office of Management and Budget has directed federal agencies to prepare reduction-in-force, or RIF, plans ahead of a possible government shutdown on October 1, according to an internal memo obtained by Fox News. The guidance directs agencies to consider issuing RIF notices to employees who work on programs that would not be funded if appropriations lapse. The memo emphasizes that “those Federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out.”
Under the guidance, RIF notices would be issued in addition to furlough notices and should go to all employees tied to the affected programs. Agencies would later revise those plans once Congress approves fiscal year 2026 appropriations, keeping only the staff needed to carry out core statutory functions. The memo notes that while Congress has historically passed short-term funding bills on a bipartisan basis, this year is different. It accuses Democrats of pursuing “insane demands, including $1 trillion in new spending,” which it says could force a shutdown.
The memo underscores the political edge of the current funding fight. Last week, the House passed H.R. 5371, described as a clean continuing resolution that would extend current funding through November 21. The administration backs the bill, but the memo says Democrats are blocking it in the Senate. “We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary,” the memo states. The White House added that “The President supports enactment of a clean CR to ensure no discretionary spending lapse after Sept. 30, 2025, and OMB hopes the Democrats will agree.” Fox News Digital pressed the White House for comment but did not receive an immediate response.
Beyond the funding standoff, the memo hints at the practical consequences of a shutdown on agency operations. It notes that in past shutdowns, routine functions tied to funded programs would continue only to the extent required by law or funding, while many nonessential services could be curtailed. The guidance suggests that agencies prepare for scenarios in which nonmandatory activities — such as nonessential services or programs not statutorily required — would be paused or scaled back until funding resumes.
The document serves as a reminder that, even as negotiators debate spending levels, agencies are already taking precautionary steps to manage staffing and operations should a lapse occur. The memo indicates that any RIFs or related workforce adjustments would be temporary and would be reassessed once congressional appropriations for FY2026 are enacted.
Analysts say the clash over spending priorities reflects broader partisan battles in Washington over how to fund government operations. The White House has pressed for a clean continuing resolution to prevent a lapse in discretionary spending, arguing that stability is essential for public services and national security. Senate leadership has signaled openness to a CR, but negotiations remain unresolved as the deadline approaches. Officials emphasize that the administration’s priority is avoiding a shutdown while continuing to work toward a longer-term budget framework.
Which programs would be most affected by a funding lapse remains uncertain until Congress acts. The memo’s focus on nonessential programs underscores a preference for preserving core statutory functions, even if it means curtailing other activities temporarily. If lawmakers reach agreement, agencies would withdraw their RIF plans and return staff to normal operations; if not, agencies would implement furloughs and RIFs in alignment with the funded and unfunded status of specific programs.
In the political timeline, October 1 marks the potential start of a funding gap. The White House’s internal guidance signals readiness to respond rapidly to a lapse, while the administration continues to advocate for bipartisan action on a clean CR. As lawmakers debate spending levels and policy riders, federal workers and contractors face the prospect of job actions and disrupted services, underscoring the real-world impact of legislative impasses on government operations.