The Biden administration has directed federal agencies to prepare comprehensive plans for large-scale layoffs in the event of a government shutdown next week, signaling a significant shift from the temporary furloughs that have been the standard response in past shutdowns. The move has sparked political outcry and intensified fears of widespread disruption across government operations.
According to a memo circulated by the White House’s Office of Management and Budget (OMB) on Wednesday, September 24, 2025, agencies were instructed to identify specific programs, projects, and activities that would lose discretionary funding if Congress fails to pass legislation to fund the government before October 1, the start of the new fiscal year. The memo, provided by the White House, stressed that “programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown.” This places a wide range of federal functions at risk, particularly those heavily reliant on discretionary spending.
The decision has left observers questioning the administration’s intentions. It remains unclear whether the White House is leveraging the shutdown threat as part of President Donald Trump’s longstanding effort to reduce the size of the federal workforce, or if the drastic measure is designed to pressure Democrats into agreeing to Republican-backed funding legislation. The ambiguity has fueled debate in Washington, where both parties continue to trade blame for the impasse.
Senate Democratic Leader Chuck Schumer sharply criticized the directive, framing it as part of a broader strategy of political coercion. “This is an attempt at intimidation,” Schumer declared in a statement Wednesday night. “Donald Trump has been firing federal workers since Day One — not to govern, but to scare.” He further predicted that any mass terminations resulting from the shutdown would face legal challenges and, like past attempts, be overturned in court.
Federal agencies were instructed not only to draft reduction-in-force plans but also to prepare notices for employees who may be affected. This development underscores the seriousness of the White House’s stance and suggests that agencies must be ready to implement layoffs quickly should the funding crisis remain unresolved. Politico first reported on the OMB memo, which has since drawn widespread scrutiny.
The current standoff escalated earlier this week when President Trump abruptly canceled a planned meeting with top Democratic leaders that was intended to address the government funding situation. The cancellation has heightened the risk of a partial government shutdown, with both Republicans and Democrats locked in a stalemate over budget priorities.
The push for potential mass layoffs aligns with Trump’s broader agenda to reshape the federal government. Since taking office in January, he has championed downsizing efforts across the 2.4 million-member federal civilian workforce, often describing it as bloated and inefficient. Data shared by Office of Personnel Management Director Scott Kupor in August revealed that approximately 300,000 federal civilian employees will have departed their positions by the end of 2025. Of that number, about 154,000 workers accepted buyouts and are set to officially leave the federal payroll on September 30 — the same day Congress faces its deadline to approve new funding.
The looming convergence of the fiscal year-end, unresolved political negotiations, and Trump’s workforce reduction drive has created an atmosphere of heightened uncertainty for federal employees. Many workers fear not only temporary disruptions in pay but also the possibility of permanent job loss if the White House’s reduction-in-force plans are executed.
With only days remaining before the deadline, the political standoff continues to threaten both the livelihoods of hundreds of thousands of federal employees and the stability of government operations. The situation underscores the broader stakes of the budget negotiations — not just in terms of partisan politics, but also in the potential long-term reshaping of the federal workforce and the functioning of critical government services.
