Administration Reveals Government Worker Layoffs as Funding Gap Approaches Three-Week Mark

The White House disclosed the start of government employee terminations on Friday, making good on earlier warnings linked to the ongoing US government shutdown, which is set to extend into its third straight week.

Formal Statement and Early Information

The director of the White House budget office wrote on social media that “RIFs have begun,” indicating the government’s process for terminating staff.

While Vought provided no details on which agencies were impacted, a treasury spokesperson stated that notices had been distributed within that department. Furthermore, a DHS spokesperson indicated that staff reductions would also occur at the CISA. Also, a union for federal workers confirmed that employees at the Education Department would be affected by the reduction in force.

Labor Reaction and Court Actions

Labor representatives cautions that the layoffs would have “devastating effects” on services used by the public and pledged to contest the actions in court.

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

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

Legislative Impasse and Budget Dispute

Lawmakers from the Democratic party have declined to vote for a GOP-supported bill to restore funding unless it includes provisions related to health policy. Following multiple unsuccessful votes, the GOP leadership in the Senate have put the chamber in recess until the following week, indicating the standoff is not expected to be ended before then.

At a press conference, the Republican House speaker, Mike Johnson, criticized opposition lawmakers for not supporting the Republican bill, which was approved in the House on a largely partisan basis.

“This is the last paycheck that 700,000 federal workers will see until opposition leaders decide to fulfill their duties and reopen the government,” the speaker stated. Beginning shortly, military personnel, many of whom live on tight budgets, are going to miss a complete payment.”

Legal and Operational Constraints

Previously, unions filed for a court injunction to prevent the administration from implementing any layoffs during the shutdown. Additionally, a federal judge ordered the administration to disclose details on termination strategies, affected agencies, and if any federal employees had been recalled to carry out layoffs.

An analysis argued that a government shutdown limits the authority of the government to carry out firings, citing guidance that admitted any long-term staff cuts need to have been started before the shutdown began.

Impact on Workers

These terminations took place on the same day that government employees received only a incomplete payment covering the final days of September but excluding the beginning of the current month, since appropriations lapsed at the beginning of the month.

A public service advocate, the head of the non-profit Partnership for Public Service, condemned the gridlock’s impact on government workers.

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

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

Mikayla Lin
Mikayla Lin

Elara Vance is a business strategist with over 15 years of experience in corporate innovation and digital transformation.