Administration Announces Federal Employee Layoffs as Shutdown Approaches Third Week

Administration officials confirmed the start of government employee layoffs on the end of the week, following through on prior threats in response to the continuing federal funding lapse, which is now poised to stretch into its third straight week.

Official Announcement and Early Information

The director of the White House budget office wrote on a public platform that “reductions in force have begun,” referring to the government’s process for letting employees go.

Although the official did not specify which departments were affected, a treasury spokesperson stated that notices had been distributed within that agency. Additionally, a Department of Homeland Security representative indicated that layoffs would take place at the Cybersecurity and Infrastructure Security Agency. Also, a labor organization representing federal workers announced that members at the Department of Education would be impacted by the reduction in force.

Union Response and Court Actions

Labor representatives warned that the terminations would have “devastating effects” on services relied upon by the public and pledged to challenge the actions in the legal system.

This is shameful that the government has used the funding lapse as an excuse to wrongfully terminate thousands of workers who deliver essential functions to communities nationwide,” stated a national union president, who leads the American Federation of Government Employees.

The largest labor federation in the US reacted to the announcement, saying, “Labor organizations will see you in court.”

Political Standoff and Funding Battle

Lawmakers from the Democratic party have declined to support a Republican-backed legislation to restore funding unless it contains provisions related to health policy. After repeated failed attempts, the GOP leadership in the Senate have put the chamber in recess until the following week, indicating the deadlock is not expected to be resolved soon.

At a press conference, the GOP leader in the House, Mike Johnson, blasted Senate Democrats for rejecting 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 Washington Democrats decide to fulfill their duties and reopen the government,” the speaker said. “Starting next week, American service members, who often live paycheck to paycheck, are going to miss a complete payment.”

Legal and Operational Constraints

Previously, unions filed for a court injunction to prevent the government from carrying out any reductions in force during the shutdown. Moreover, a federal judge ordered the government to disclose details on termination strategies, affected agencies, and if any government staff had been brought back to carry out layoffs.

An analysis contended that a funding lapse limits the authority of the administration to carry out firings, referencing guidance that admitted any permanent layoffs need to have been initiated before the funding expired.

Impact on Workers

These terminations occurred on the very day that federal workers got only a partial paycheck covering the final days of September but excluding the start of the current month, since appropriations expired at the beginning of the month.

A public service advocate, the head of the advocacy group, 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 administration have failed to keep our government running,” the advocate said. “Our flight regulators, veterans’ healthcare providers, smoke jumpers and food inspectors are not responsible for this funding crisis.”

A notable point is that lawmakers and senior White House leaders are still receiving salaries during the funding gap.

David Massey
David Massey

A tech journalist and digital strategist based in London, specializing in emerging technologies and startup ecosystems across Europe.