The Trump administration is threatening to conduct reductions in force at federal agencies if Congress cannot reach a funding agreement by Sept. 30 and government funding lapses.
In a memo from the Office of Management and Budget, department leaders were told to “consider” conducting RIFs for “programs, projects, or activities” (PPA) that meet three conditions: “discretionary funding lapses on Oct. 1; another source of funding, such as [the OBBBA] is not currently available; and (3) the PPA is not consistent with the president’s priorities.”
The memo was obtained by Politico and posted online.
“With respect to those federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out,” the memo says.
The House has passed a Continuing Resolution to keep the government funded, but Senate Democrats are demanding restoration of healthcare funding that was cut by the OBBBA.
Senate Minority Leader Chuck Schumer told Politico the move was an attempt to intimidate Democrats.
“This is nothing new and has nothing to do with funding the government,” Schumer said. “These unnecessary firings will either be overturned in court or the administration will end up hiring the workers back, just like they did as recently as today.”
RIF notices will be in addition to any furlough notices provided due to the lapse in appropriations.
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“RIF notices should be issued to all employees working on the relevant PPA, regardless of whether the employee is excepted or furloughed during the lapse in appropriations,” the memo says. “Once fiscal year 2026 appropriations are enacted, agencies should revise their RIFs as needed to retain the minimal number of employees necessary to carry out statutory functions. Any proposed RIF plan must be submitted to OMB.”
Trump has so far refused to meet with Democrats to discuss a spending deal to avert a shutdown, as each side tries to persuade voters that the other side is responsible if a shutdown takes place.
“Over the past 10 fiscal years, Congress has consistently passed Continuing Resolutions (CRs) on or by Sept. 30 on a bipartisan basis. Unfortunately, congressional Democrats are signaling that they intend to break this bipartisan trend and shut down the government in the coming days over a series of insane demands, including $1 trillion in new spending,” the memo says.
The American Federation of Government Employees issued a statement saying, in part, “Federal employees are not bargaining chips. They are veterans, caregivers, law enforcement officers, and neighbors who serve their country and fellow Americans every day. They deserve stability and respect, not pink slips and political games."
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