White House Announces Federal Employee Job Cuts as Shutdown Nears Third Week

Administration officials confirmed the start of government employee terminations on the end of the week, following through on prior threats in response to the ongoing federal funding lapse, which is set to stretch into its third straight week.

Official Announcement and Initial Details

The director of the White House budget office posted on a public platform that “reductions in force have begun,” referring to the government’s procedure for terminating staff.

While the official provided no details on which agencies were affected, a representative from the Treasury Department confirmed that layoff warnings had been distributed within that agency. Additionally, a DHS spokesperson indicated that layoffs would also occur at the CISA. Moreover, a labor organization representing federal workers announced that employees at the Department of Education would be affected by the staff cuts.

Union Response and Legal Challenges

Union leaders cautions that the layoffs would have “severe consequences” on public services used by millions of Americans and pledged to challenge the moves in court.

This is shameful that the administration has exploited the funding lapse as an pretext to illegally fire numerous employees who provide essential functions to communities across the country,” stated Everett Kelley, who leads the AFGE.

The largest labor federation in the US reacted to the announcement, saying, “Labor organizations will see you in court.”

Legislative Impasse and Budget Dispute

Congressional Democrats have declined to vote for a GOP-supported bill to reopen the government unless it contains provisions related to health policy. After multiple unsuccessful votes, the GOP leadership in the Senate have put the chamber in recess until next Tuesday, indicating the standoff is not expected to be ended soon.

At a media briefing, the GOP leader in the House, the speaker, criticized opposition lawmakers for rejecting the Republican bill, which passed in the House on a near party-line vote.

“This is the last paycheck that 700,000 federal workers will see until Washington Democrats decide to fulfill their duties and end the shutdown,” Johnson said. “Starting next week, military personnel, many of whom live on tight budgets, are going to miss a full paycheck.”

Judicial and Practical Limits

Previously, labor groups filed for a temporary restraining order to block the administration from carrying out any reductions in force during the shutdown. Additionally, a court official directed the administration to disclose details on termination strategies, affected agencies, and whether any federal employees had been recalled to execute staff reductions.

An analysis argued that a government shutdown restricts the authority of the administration to conduct terminations, citing guidance that acknowledged any long-term staff cuts need to have been started before the funding expired.

Consequences for Employees

The layoffs took place on the same day that federal workers received only a partial paycheck for the final days of September but excluding the beginning of the current month, since funding expired at the beginning of the month.

A public service advocate, the head of the non-profit Partnership for Public Service, criticized the political stalemate’s impact on federal employees.

This is unjust to make federal employees suffer because our leaders in the legislature and the White House have not succeeded to keep our federal operations open and operational,” the advocate said. The flight regulators, VA nurses, smoke jumpers and food inspectors are not at fault for this government shutdown.”

The irony is that members of Congress and senior White House leaders are still receiving salaries during the shutdown.

Julie Mitchell
Julie Mitchell

Maya Chen is a tech journalist and innovation strategist with over a decade of experience covering digital transformation and startup ecosystems.