White House Orders Agencies To Plan Mass Firings If US Government Shutdown Hits

(MENAFN- Live Mint) The White House has instructed federal agencies to prepare for mass firings in the event of a government shutdown, signalling an unprecedented escalation in the Trump administration's approach to a standoff with congressional Democrats over federal funding. The directive, detailed in an Office of Management and Budget (OMB) memo, targets programs that are not legally required to continue, reports CNN and Bloomberg.

Also Read | Trump unveils Presidential Walk of Fame, replaces Biden with autopen portrait Why is the White House planning mass firings?

According to the memo, agencies are required to identify programmes whose funding will lapse if Congress fails to meet the September 30 deadline and which have no alternative source of finance.

These programmes are then to be considered for sweeping reductions in force, potentially permanently eliminating jobs deemed“not consistent” with President Donald Trump's priorities.

“We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary,” the OMB memo stated.

The move marks a sharp departure from past shutdown protocols, under which nonessential federal employees were typically furloughed temporarily and reinstated once funding resumed, usually with back pay.

Also Read | Inside the White House struggle to tame the Epstein crisis How would this affect federal employees?

In a typical shutdown, around 60 per cent of federal employees are considered essential and continue working, while the remainder are furloughed until funding is restored. The proposed large-scale mass firings could significantly impact economic growth by permanently reducing the workforce.

“Setting aside the question of legality, this would be an action of enormous self-harm inflicted on the nation, needlessly ridding the country of talent and expertise. It's also extortive. 'Give us what we want in a funding fight, or we'll hurt the country,'” said Bobby Kogan, a former OMB official during the Biden administration and now senior director of federal budget policy at the Center for American Progress.

Also Read | White House Floats Doctor Exemptions for $100,000 Visa Fee What specific instructions did the OMB give?

The memo, first reported by Politico, directs agencies to draft plans for programs and other discretionary spending set to lapse on October 1, where no alternative funding source is available.

“Such programmes are no longer statutorily required to be carried out,” the document notes. Agencies are then to outline potential permanent job cuts for areas not aligned with the Trump administration's priorities. These plans would only be enacted if Congress fails to continue funding by the deadline.

Also Read | How Trump's $100k H-1B visa fee will redefine tech hiring for Indians and the US What is the political context behind the memo?

Lawmakers remain at an impasse over government funding for the new fiscal year. Democratic leaders had planned to meet with Trump on Thursday, but the president cancelled the talks via social media, demanding that Democrats first drop calls to renew health care subsidies and halt Medicaid cuts.

House Democratic leader Hakeem Jeffries criticised the administration's actions, stating:“Donald Trump continues to make up reasons to exercise emergency powers that don't exist, and he has done this outside of the context of a government shutdown.”

Jeffries also warned on X that Democrats“will not be intimidated” by threats of mass firings.

Also Read | Harris blasts Biden aides for undermining her 2024 campaign in 107 Days memoir What does this mean for the US government?

The memo represents a marked escalation from standard shutdown planning and signals that the Trump administration may be willing to take drastic measures against nonessential federal programmes. The legal and economic consequences of such mass firings remain uncertain, and the memo underscores the high-stakes nature of ongoing funding negotiations.

With the September 30 deadline approaching, federal agencies are now grappling with the challenge of preparing contingency plans that could permanently alter the structure of the government workforce.

MENAFN25092025007365015876ID1110109332