Administration Reveals Federal Worker Job Cuts as Shutdown Nears Three-Week Mark

Administration officials confirmed the start of government employee layoffs on the end of the week, following through on earlier warnings in response to the ongoing federal funding lapse, which is set to extend into its third consecutive 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 government’s process for terminating staff.

Although Vought did not specify which agencies were impacted, a treasury spokesperson confirmed that notices had been distributed within that department. Furthermore, a Department of Homeland Security spokesperson indicated that layoffs would take place at the CISA. Moreover, a labor organization representing federal workers confirmed that employees at the Department of Education would be affected by the reduction in force.

Union Response and Legal Challenges

Union leaders cautions that the terminations would have “devastating effects” on services relied upon by the public and pledged to contest the actions in court.

“It is disgraceful that the administration has exploited the government shutdown as an pretext to wrongfully terminate thousands of workers who deliver critical services to communities across the country,” said Everett Kelley, who leads the American Federation of Government Employees.

The AFL-CIO reacted to the news, declaring, “America’s unions will see you in court.”

Political Standoff and Budget Dispute

Congressional Democrats have declined to support a GOP-supported legislation to restore funding unless it includes healthcare-centered concessions. Following multiple unsuccessful votes, the GOP leadership in the Senate have put the chamber in recess until the following week, meaning the deadlock is unlikely to be ended before then.

During a media briefing, the GOP leader in the House, Mike Johnson, blasted Senate Democrats for rejecting the GOP bill, which was approved in the lower chamber on a near party-line vote.

Federal workers’ final pay that 700,000 federal workers will see until opposition leaders decide to do their job and end the shutdown,” Johnson stated. “Starting next week, American service members, who often live paycheck to paycheck, are going to miss a full paycheck.”

Legal and Operational Constraints

Last week, labor groups sought a temporary restraining order to block the government from carrying out any layoffs during the funding gap. Additionally, a court official ordered the administration to disclose details on termination strategies, impacted departments, and whether any government staff had been recalled to carry out layoffs.

An analysis argued that a government shutdown restricts the authority of the administration to carry out firings, referencing official advice that admitted any permanent layoffs need to have been started prior to the shutdown began.

Impact on Workers

These terminations occurred on the same day that government employees got only a partial paycheck for the end of the previous month but not the start of October, since funding expired at the start of the period.

A public service advocate, the head of the advocacy group, condemned the political stalemate’s impact on government workers.

This is unjust to make government staff bear the burden because our elected officials in the legislature and the administration have failed to keep our government running,” Stier said. “Our flight regulators, veterans’ healthcare providers, wildland firefighters and food inspectors are not at fault for this funding crisis.”

The irony is that lawmakers and senior White House leaders are continuing to be paid amid the funding gap.

Theresa Nielsen
Theresa Nielsen

A certified financial planner with over 15 years of experience in investment banking and personal wealth management.