Administration Reveals Government Employee Job Cuts as Shutdown Approaches Three-Week Mark

Administration officials disclosed the start of federal worker layoffs on Friday, following through on prior threats in response to the continuing federal funding lapse, which is now poised to extend into its third consecutive week.

Formal Statement and Early Information

The director of the White House budget office posted on a public platform that “RIFs have begun,” referring to the official procedure for terminating staff.

Although Vought provided no details on which departments were impacted, a representative from the Treasury Department stated that layoff warnings had been distributed within that agency. Additionally, a DHS spokesperson noted that layoffs would also occur at the CISA. Also, a union for federal workers announced that employees at the Department of Education would be impacted by the staff cuts.

Labor Reaction and Legal Challenges

Union leaders warned that the layoffs would have “devastating effects” on services used by millions of Americans and pledged to challenge the moves in the legal system.

“It is disgraceful that the administration has used the funding lapse as an excuse to wrongfully terminate numerous employees who deliver essential functions to the public across the country,” stated Everett Kelley, who leads the AFGE.

The AFL-CIO responded to the announcement, declaring, “Labor organizations will see you in court.”

Political Standoff and Funding Battle

Congressional Democrats have refused to vote for a GOP-supported legislation to restore funding unless it contains healthcare-centered concessions. After multiple unsuccessful votes, the GOP leadership in the Senate have adjourned the Senate until next Tuesday, indicating the standoff is not expected to be resolved soon.

During a press conference, the GOP leader in the House, Mike Johnson, criticized opposition lawmakers for not supporting the GOP proposal, which was approved in the House on a largely partisan basis.

“This is the last paycheck that 700,000 federal workers will see until opposition leaders decide to do their job and end the shutdown,” Johnson stated. “Starting next week, military personnel, who often live on tight budgets, are going to miss a complete payment.”

Judicial and Practical Limits

Last week, labor groups sought a court injunction to prevent the administration from implementing any layoffs during the shutdown. Additionally, a court official ordered the government to provide specifics on termination strategies, affected agencies, and whether any government staff had been brought back to carry out staff reductions.

A report contended that a funding lapse restricts the authority of the administration to conduct terminations, citing guidance that admitted any long-term staff cuts need to have been initiated before the shutdown began.

Consequences for Employees

The layoffs occurred on the same day that federal workers got only a incomplete payment for the final days of the previous month but not the start of the current month, since appropriations expired at the beginning of the period.

Max Stier, the president of the non-profit Partnership for Public Service, criticized the political stalemate’s impact on federal employees.

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

The irony is that members of Congress and top administration officials are continuing to be paid during the shutdown.

Kathryn Wood
Kathryn Wood

A seasoned business strategist with over 15 years of experience in enterprise consulting and digital transformation.