Ahead of a potential government shutdown on October 1st, the White House Office of Management and Budget has directed federal agencies to prepare for mass layoffs targeting employees in programs that lack funding or contradict presidential priorities. The memo, obtained by POLITICO, outlines plans for permanent job cuts through Reduction-in-Force (RIF) notices, marking a departure from past shutdowns where furloughs were typically temporary.

OMB Director Russ Vought instructed agencies to identify programs facing funding lapses and draft RIF plans that would eliminate positions in areas not aligned with the administration’s goals. Employees in non-essential departments could face termination if Congress fails to approve a spending bill by September 30th. Key services such as Social Security, Medicare, military operations, and law enforcement would remain unaffected, according to an anonymous OMB official.

The directive escalates tensions between the White House and Democrats, who have rejected a Republican-led short-term funding measure in favor of broader policy concessions. President Trump has dismissed negotiations, labeling Democratic demands “unserious,” while Senate Republicans struggle to secure enough votes to pass a stopgap bill. The administration’s strategy hinges on leveraging permanent job losses as leverage in the fiscal standoff.

Agencies must submit RIF plans to OMB for approval immediately, with notices issued even to staff typically exempt from furloughs. The move signals a significant shift in how shutdowns are handled, prioritizing long-term workforce reductions over temporary pauses in operations.