White House Announces Federal Employee Layoffs as Shutdown Nears Three-Week Mark

Administration officials confirmed the initiation of government employee terminations on Friday, making good on earlier warnings linked to the continuing federal funding lapse, which is now poised to extend into its third straight week.

Official Announcement and Initial Details

The director of the White House budget office wrote on social media that “reductions in force have begun,” referring to the official procedure for letting employees go.

Although Vought did not specify which agencies were impacted, a representative from the Treasury Department stated that layoff warnings had been issued within that agency. Additionally, a DHS representative indicated that staff reductions would take place at the CISA. Moreover, a labor organization for federal workers announced that employees at the Department of Education would be impacted by the reduction in force.

Labor Reaction and Legal Challenges

Labor representatives cautions that the terminations would have “severe consequences” on services used by the public and pledged to contest the actions in court.

This is shameful that the administration has exploited the funding lapse as an pretext to illegally fire numerous employees who provide critical services to communities nationwide,” stated Everett Kelley, representing the AFGE.

The largest labor federation in the US responded to the announcement, declaring, “America’s unions will see you in court.”

Political Standoff and Funding Battle

Lawmakers from the Democratic party have declined to vote for a Republican-backed bill to restore funding unless it contains provisions related to health policy. Following multiple unsuccessful votes, the Senate’s Republican leaders have adjourned the Senate until next Tuesday, indicating the deadlock is unlikely to be resolved soon.

During a press conference, the Republican House speaker, the speaker, blasted Senate Democrats for rejecting the GOP proposal, which passed in the House on a near party-line vote.

Federal workers’ final pay that 700,000 federal workers will see until opposition leaders decide to fulfill their duties and reopen the government,” Johnson stated. Beginning shortly, American service members, who often live on tight budgets, are going to miss a full paycheck.”

Judicial and Practical Limits

Last week, unions sought a court injunction to prevent the government from implementing any layoffs during the shutdown. Additionally, a court official ordered the government to disclose details on layoff plans, affected agencies, and if any federal employees had been brought back to execute staff reductions.

A report argued that a government shutdown limits the authority of the government to conduct terminations, citing official advice that acknowledged any long-term staff cuts need to have been initiated prior to the funding expired.

Consequences for Employees

The layoffs occurred on the same day that government employees got only a partial paycheck covering the final days of September but excluding the start of the current month, since funding lapsed at the beginning of the month.

A public service advocate, the president of the non-profit Partnership for Public Service, criticized the political stalemate’s impact on government workers.

“It is wrong to make federal employees suffer because our elected officials in Congress and the White House have failed to keep our federal operations open and operational,” Stier said. “Our flight regulators, veterans’ healthcare providers, smoke jumpers and food inspectors are not at fault for this government shutdown.”

The irony is that lawmakers and top administration officials are still receiving salaries during the shutdown.

Megan Williams
Megan Williams

A tech journalist and innovation strategist with over a decade of experience covering emerging technologies and startup ecosystems across Europe.