Trump administration prepares for mass layoffs if government shuts down

By Thérèse Boudreaux
The Center Square

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.