White House Warns of Imminent Federal Layoffs Amid Government Shutdown

The White House has signaled that permanent layoffs of federal employees are imminent as the government shutdown continues. Vice President JD Vance stated that if the shutdown persists, the administration will need to implement layoffs to maintain essential services. Office of Management and Budget Director Russell Vought informed House Republicans that reductions in force (RIFs) could commence within days. The U.S. Patent and Trademark Office has already issued layoff notices, affecting approximately 1% of its workforce. The Congressional Budget Office estimates that around 750,000 federal employees will be furloughed during the shutdown, costing the government $400 million per day in compensation. Federal workforce experts have raised concerns about the feasibility of implementing RIFs on such a short timeline, noting the complex procedures and potential legal challenges involved. The Office of Personnel Management has advised agencies that RIF-related work is considered "excepted" during the shutdown, allowing such activities to continue. However, affected employees are entitled to a 60-day notice period, during which they remain eligible for retroactive pay once the shutdown concludes. Federal unions have filed lawsuits against the administration's directive to proceed with RIFs, arguing that such actions are unlawful during a shutdown. Democratic lawmakers have also questioned the legality of the administration's approach, citing potential violations of the Antideficiency Act. The situation remains fluid as the shutdown progresses.