The White House budget office has warned federal agencies to prepare for firings, not furloughs, if the government shuts down. In a memo shared with Politico, the Office of Management and Budget (OMB) directed agencies to prepare for mass layoffs in programs that would lose funding and are “not consistent with the president’s priorities.”
In the memo, OMB instructed agencies to identify programs, projects and activities that would lapse in funding should a shutdown occur. For those areas, OMB said to begin drafting reduction-in-force notices for all employees.
“Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown, and we must continue our planning efforts in the event Democrats decide to shut down the government,” the memo says.
The memo instructions mark a major shift from past shutdowns. Previously, the government furloughed federal workers, who eventually returned to their jobs once Congress cut a deal. It applies significant pressure to the government spending standoff in Congress.
The memo advises agencies to revise their plans to retain only the bare minimum staff necessary to fulfill their legally required functions.
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Potential government shutdown
The news comes amid a standoff in Congress. Government funding is set to expire at the end of the day on Tuesday.
The Republican-controlled House passed a short-term bill to fund the government through Nov. 21, but the Senate rejected both the GOP and Democratic proposals to keep the government open.
According to Politico, Democrats in the Senate are demanding that Republicans negotiate a bipartisan package. That package could include an extension of expiring Affordable Care Act subsidies.
Lawmakers have until Wednesday, Oct. 1, to pass a spending bill and avoid a shutdown. However, the memo states that if Congress passes a clean stopgap bill prior to Sept. 30, the steps outlined in the memo will not be necessary.
“We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary,” the memo reads.
Democrats respond to memo
Since OMB sent the memo, Democrats have spoken out on social media, criticizing the memo and OMB Director Russel Vought.
We’re realistic about what the country needs so we’re ready. When and where? https://t.co/ZimzS8wjpR
— Chuck Schumer (@SenSchumer) September 24, 2025
Senate Minority Leader Chuck Schumer, D-NY, issued a statement saying, “This is an attempt at intimidation. Donald Trump has been firing federal workers since day one—not to govern, but to scare. This is nothing new and has nothing to do with funding the government. These unnecessary firings will either be overturned in court or the administration will end up hiring the workers back.”
House Minority Leader Hakeem Jeffries, D-NY, posted on X, saying, “Listen Russ, you are a malignant political hack. We will not be intimidated by your threat to engage in mass firings. Get lost.”
