Critics call the layoff plan an illegal intimidation tactic amid stalled budget talks. Experts warn of severe harm to the federal workforce and the wider economy if the mass firings proceed.
Washington DC (US): The White House on Thursday, September 25 told federal agencies to prepare for permanent job cuts if Congress does not approve government funding by October 1. The move has been met with severe resistance as critics say the move is not just about money but a way to pressure lawmakers. Normally, when the government shuts down, about 60% of federal workers are considered “essential” and keep working. The rest are temporarily furloughed and usually get back pay once funding is restored. But the new memo from the Office of Management and Budget (OMB) accessed by Politico goes further. It asks agencies to list programs that will lose funding and make plans to eliminate jobs permanently in areas that do not match the Trump administration’s priorities.
Senate Democratic leader Chuck Schumer called the plan “an attempt at intimidation,” saying it would either be struck down in court or the administration would have to rehire the workers. House Democratic leader Hakeem Jeffries also accused the administration of breaking spending laws and warned that Democrats “will not be intimidated.” Bobby Kogan, a former budget official now with the Center for American Progress, said the plan would cause “enormous self-harm,” removing talent and expertise from the government. He called it an extortion tactic: give the White House what it wants in budget talks, or risk damaging the country. Talks to avoid a shutdown remain stalled. Trump canceled a planned meeting with Democratic lawmakers, saying he would not negotiate until they dropped demands for health care subsidies and protection of Medicaid funding. If mass firings go ahead, experts warn it could have serious effects on both the federal workforce and the wider economy.
What is a Government Shutdown?
A government shutdown occurs when Congress and the President fail to agree on a budget or temporary funding bill, leaving many federal agencies without the legal authority to spend money. During a shutdown, essential services such as the military, border security, and air traffic control continue to operate, but nonessential federal employees are typically furloughed or required to work without pay until funding is restored. Once a budget deal is reached, workers usually receive back pay. In short, a shutdown partially halts government operations and disrupts the lives of federal workers and the wider economy. Programs that rely on discretionary funding, such as national parks, regulatory agencies, and research projects, may be paused or slowed, affecting citizens, businesses, and the economy.
The US has experienced several government shutdowns in the past, usually caused by disagreements over budget or funding priorities. Notable examples include the 1995-1996 shutdowns under President Bill Clinton, with one lasting 5 days and another 21 days, the longest at that time. In 2013, a 16-day shutdown occurred under President Barack Obama over disputes about the Affordable Care Act. The 2018–2019 shutdown under President Donald Trump became the longest in history, lasting 35 days due to a standoff over border wall funding. Other shorter shutdowns have also occurred over minor budget disagreements.