White House threatens federal layoffs if shutdown happens, after rehiring hundreds fired by DOGE

By October 1, Congress must either pass a temporary federal funding bill or face a government shutdown. Republicans and Democrats in Congress are currently at an impasse. House Republicans have passed a continuing resolution (CR) to fund the government at current levels for a few weeks. Senate Democrats rejected this bill and brought their own funding bill that reverses cuts to Medicaid, which were deeply unpopular among both Democratic and Republican voters. Senate Republicans also voted down this bill. Earlier this week, President Trump canceled a planned White House meeting with Democratic leaders to break the logjam.

Now, the White House Office of Management and Budge is threatening layoffs across numerous federal agencies if a shutdown happens. OMB issued a memo ordering agencies to prepare reduction-in-force plans for workers in discretionary programs. Along with Elon Musk’s Department of Government efficiency, OMB has been key in mass firings of federal workers this year. By the end of 2025, about 300,000 federal workers will have left their jobs, either retiring or having accepted a buyout offered by DOGE.

Just last week, the General Services Administration issued a recall notice to rehire hundreds of employees fired by DOGE. The GSA found its operations became more expensive after firing the workers, who have continued to be paid for months despite not working. This is was not the first time a federal agency has recalled workers fired by DOGE. The IRS, the Department of Labor, and the National Parks Service and many other agencies have had to rehire workers.

OMB’s memo references Democrats’ refusal to approve the Republicans’ CR in six different places. Democrats see OMB’s threat as a negotiating tactic. Senate Democratic leader Chuck Schumer called the memo an “attempt at intimidation” while Sen. Chris Van Hollen (D-MD) characterized it as “mafia-style blackmail”.

What to expect in the event of a government shutdown.

Shutdown would halt training and hiring for air traffic controllers amid nationwide shortage.