White House memo warns agencies to plan for mass firings if a shutdown occurs

A Wednesday night memo from the White House Office of Management and Budget (OMB) directed federal agencies to prepare for large-scale layoffs in the event of a government shutdown, signaling an escalation in the funding standoff as next week’s deadline approaches.

The guidance offered the first detailed look at the Trump administration’s shutdown operations after months of unusual secrecy compared with prior administrations. Agencies were told to update contingency plans—documents historically posted and refreshed every few years—after the most recent versions, submitted under the Biden administration, were removed from public websites earlier this year without explanation. Officials at several departments said they had been largely unaware of the White House’s approach until this week; OMB held its first shutdown planning call with agency counterparts earlier.

The memo served both as operational direction and political pressure, indicating President Donald Trump would use a lapse in funding to advance priorities in ways Democrats, including Senate Democratic Leader Chuck Schumer, had warned about earlier this year. Schumer backed a GOP funding bill in March to avoid a shutdown but Democrats now say they will hold to their demands. OMB Director Russ Vought’s move aligned with long-standing efforts by some officials to reduce the federal workforce. “You could fire people now…But it’s now part of rhetorical positioning that the White House has chosen,” said Douglas Holtz-Eakin of the American Action Forum. GOP Sen. Bernie Moreno warned prolonged closure could force “permanent cuts,” while Sen. Susan Collins said federal employees “should not be treated as pawns.” Republican strategist Doug Heye cautioned the approach “could backfire.”

At the White House Thursday, Trump criticized Democrats, saying, “They never change…They want to open up the borders,” while avoiding direct comment on the firing plans. Democrats dismissed the memo as a scare tactic; House Minority Leader Hakeem Jeffries said, “We will not be intimidated by Russ Vought…,” and a senior aide told CNN, “If Trump’s master plan is that federal workers will be on Republicans’ side, they’re f**king morons.” TSA and air traffic control workers are expected to be deemed “essential,” working without pay until a shutdown ends, according to two sources.

The OMB memo echoed a February directive by Vought and acting OPM Director Charles Ezell urging “maximum elimination of functions that are not statutorily mandated,” asserting voters backed sweeping reforms on Nov. 5, 2024. While earlier court injunctions clouded the path, recent Supreme Court and circuit orders in separate cases opened potential avenues for the plans. Harvard Law professor Jack Goldsmith wrote that an administration willing to downsize “has an asymmetric weapon against Congressional government shutdown threats.”

Source: CNN