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White House Eyes New Round of Mass Layoffs if Government Shuts Down

September 24, 2025
in News
White House Eyes New Round of Mass Layoffs if Government Shuts Down
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The White House told federal agencies late Wednesday to prepare for another possible round of mass firings, which could be carried out unless Congress can strike a deal to avert a government shutdown next week.

The extraordinary ultimatum appeared designed to pressure Democrats, and added to the stakes of a fast-approaching fiscal deadline, with federal funding set to lapse after midnight on Sept. 30. The White House delivered its threat hours after President Trump refused to negotiate with Democratic leaders over the terms of a spending truce.

In the letter, the White House Office of Management and Budget called on Congress to adopt a short-term measure that would preserve existing funding levels into November. Such a move would buy time for Democrats and Republicans to negotiate a longer-term agreement, which would fund the remainder of the 2026 fiscal year.

Absent that, the White House instructed federal agencies to prepare for a shutdown, setting in motion a process that may darken a vast array of vital government services while furloughing many federal workers without pay beginning Oct. 1.

But the Trump administration coupled its formal notification with an additional directive to agencies, telling them “to use this opportunity to consider Reduction in Force” notices to lay off workers. Since taking office, President Trump has invoked this process repeatedly to sharply reduce the federal work force, in a campaign that began with the work of the Department of Government Efficiency, or DOGE.

In the new memo, the White House told agency leaders to focus on eliminating positions where funding has expired, or could not be sourced under other laws, and had been deemed to be “not consistent” with President Trump’s political agenda.

On one hand, the White House signaled the potential firings would “not be necessary” if Congress could strike a short-term deal to avert a shutdown. House Republicans adopted such a stopgap earlier this month, but Senate Democrats quickly rejected it, as they sought to force Mr. Trump to extend a set of expiring health care subsidies.

The administration also indicated, however, that agencies should still “revise” their layoff plans once funding for the 2026 fiscal year is finalized, tasking them to maintain a work force with only “the minimal number of employees necessary to carry out” functions required by law.

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

Politico reported the memo earlier Wednesday.

Tony Romm is a reporter covering economic policy and the Trump administration for The Times, based in Washington.

The post White House Eyes New Round of Mass Layoffs if Government Shuts Down appeared first on New York Times.

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