Trump administration prepares for mass layoffs if government shuts down
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.
Latest News Stories
WATCH: Pritzker blames Trump for budget cut EO; Chicago public safety on Trump’s mind
Louisiana joins four states in complaint against electricity grid operator
Illinois quick hits: State rep. appointed circuit judge; Bailey to seek rematch with Pritzker
WATCH: IL governor on photo with wanted suspect: ‘No way to vet everybody’
Illinois quick hits: Constitutional amendment would guarantee parental rights
WATCH: Republican leader: says Pritzker budget cut EO a ploy for IL tax increases
Judge’s questions during IL gun ban arguments gives rights advocates ‘hope’
Illinois agencies to post monthly investment reports, lawmaker calls symbolic
Meeting Summary and Briefs: Summit Hill School District 161 for August 13, 2025
Summit Hill 161 Accepts a Dozen Resignations, Approves New Hires
Summit Hill 161 Approves $48K Tech Upgrade, Board Divided on New Teacher Hire
Meeting Summary and Briefs: Frankfort Village Board for September 8, 2025