White House Announces Federal Employee Layoffs as Funding Gap Approaches Third Week

Administration officials confirmed the start of government employee layoffs on the end of the week, following through on earlier warnings in response to the continuing US government shutdown, which is set to stretch into its third straight week.

Official Announcement and Early Information

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

While Vought provided no details on which departments were affected, a representative from the Treasury Department confirmed that layoff warnings had been distributed within that department. Furthermore, a DHS spokesperson indicated that layoffs would take place at the Cybersecurity and Infrastructure Security Agency. Moreover, a labor organization representing federal workers announced that employees at the Education Department would be impacted by the staff cuts.

Union Response and Legal Challenges

Labor representatives warned that the layoffs would have “devastating effects” on services relied upon by the public and vowed to challenge the actions in court.

This is shameful that the government has exploited the government shutdown as an excuse to illegally fire thousands of workers who deliver essential functions to the public across the country,” stated Everett Kelley, who leads the AFGE.

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

Political Standoff and Funding Battle

Congressional Democrats have declined to vote for a GOP-supported legislation to reopen the government unless it includes healthcare-centered concessions. Following repeated failed attempts, the GOP leadership in the Senate have put the chamber in recess until the following week, indicating the deadlock is unlikely to be ended soon.

At a media briefing, the Republican House speaker, Mike Johnson, criticized Senate Democrats for not supporting the GOP proposal, which was approved in the lower chamber on a largely partisan basis.

“This is the last paycheck that 700,000 federal workers will see until Washington Democrats decide to do their job and reopen the government,” the speaker stated. “Starting next week, American service members, many of whom live on tight budgets, are going to miss a complete payment.”

Judicial and Practical Limits

Last week, labor groups sought a temporary restraining order to block the administration from implementing any layoffs during the funding gap. Additionally, a court official ordered the government to disclose details on layoff plans, affected agencies, and if any government staff had been recalled to execute layoffs.

A report argued that a funding lapse limits the authority of the government to conduct terminations, referencing official advice that admitted any permanent layoffs need to have been started prior to the funding expired.

Impact on Workers

The layoffs occurred on the same day that federal workers got only a partial paycheck for the end of September but excluding the start of the current month, since funding lapsed at the start of the month.

Max Stier, the president of the non-profit Partnership for Public Service, criticized the gridlock’s effect on government workers.

This is unjust to make government staff bear the burden because our elected officials in Congress and the administration have failed to keep our government running,” the advocate stated. “Our flight regulators, veterans’ healthcare providers, wildland firefighters and safety officials are not at fault for this government shutdown.”

The irony is that lawmakers and senior White House leaders are still receiving salaries amid the funding gap.

Jessica Carroll
Jessica Carroll

A seasoned financial analyst with over a decade of experience in UK investment markets, specializing in venture capital and portfolio management.