Categories: Public Policy & Government

OMB: Substantial Federal Employee Layoffs Begin Amid Shutdown

OMB: Substantial Federal Employee Layoffs Begin Amid Shutdown

Overview: OMB signals substantial federal layoff activity during the shutdown

The Office of Management and Budget (OMB) has signaled that substantial reductions in force (RIFs) among federal employees have begun as the government shutdown enters its second week. While most prior shutdowns either kept workers on the job (even without immediate pay) or relied on furloughs, this round appears to be driving a different path: targeted layoffs in an environment where funding remains uncertain.

What RIFs mean in a funding lapse

Reductions in force are not typical during a lapse in appropriations, which is usually a period when agencies either operate with limited staffing or implement furloughs until funding returns. In this instance, the Office of Management and Budget circulated a memo indicating that back pay for furloughed employees is not guaranteed, complicating the standard expectation that workers are fully compensated once a shutdown ends.

Official statements and agency confirmations

OMB Director Russ Vought publicly posted on X that, in his words, “RIFs have begun” and that the activity is substantial. An OMB spokesperson confirmed that RIFs are underway but did not provide further details. Multiple federal agencies have since acknowledged sending RIF notices to furloughed staff, signaling a broad, coordinated approach across the federal government.

Health and Human Services

A spokesperson for the Department of Health and Human Services said that RIF notices have been distributed to some furloughed workers across several divisions. The statement frames the action as a direct consequence of the ongoing shutdown and tied to funding constraints.

Department of Homeland Security

Within DHS, a spokesperson indicated that RIFs will affect employees at the Cybersecurity and Infrastructure Security Agency (CISA). The department frames the move as part of a broader effort to realign agency missions during the funding lapse, noting history from the prior administration where CISA focused on different priorities.

Education Department

The Education Department confirmed that its employees will be impacted by RIFs, underscoring how the shutdown’s financial gaps are forcing cuts across multiple agencies.

Political reaction and the debate over legality

Democratic lawmakers quickly condemned the mass firings, arguing that a shutdown does not necessitate or even authorize broad layoffs. Senator Patty Murray of Washington criticized the administration for choosing to “inflict more pain on the American people.” Representative Don Beyer added that directing mass firings during a shutdown violates the law, calling the moves criminally questionable. The debate centers on whether the government can or should execute RIFs while awaiting budgetary resolutions.

What this could mean for federal workers and services

For federal employees, the shift to RIFs introduces a new layer of uncertainty during a period of funding gaps. It also raises questions about back pay treatment, especially for those who find themselves reassigned, terminated, or facing reduced pay in the near term. The Administration has signaled a broader agenda aimed at realigning programs to priorities it deems essential, a move that critics say could undermine public service delivery during a crisis in funding.

The larger political and policy context

As the shutdown unfolds, the administration has been clear about a push to reorient federal operations toward its stated priorities. The rhetoric surrounding the layoffs — including provocative messaging from the White House — has amplified partisan tensions, with lawmakers arguing that mass firings during a funding lapse are a mistake with long-term implications for public confidence and the federal workforce.

Next steps and reporting

This is a developing story. Agencies are expected to continue issuing RIF notices, and the administration has signaled that further details may emerge as budget talks progress. Federal workers and advocacy groups will be watching closely for clarity on back pay, severance, and the long-term impact on agency missions.

For updates on changes in the federal government and the status of RIFs, readers can reach out to the Federal News Network through their newsroom channels.