AI-Summary – News For Tomorrow
A potential government shutdown looms, and the Trump administration, according to a memo, is considering mass layoffs, going beyond traditional furloughs. While the Antideficiency Act restricts unauthorized spending, shutdown procedures often rely on tradition, allowing leeway in determining “essential” services. The administration has already reduced the federal workforce, and a shutdown could accelerate these cuts. While Social Security and essential services would continue, disruptions are still possible, as seen in past shutdowns. Experts debate the legality of widespread firings during a shutdown, but the administration’s intent to cut agencies is clear, raising concerns about potential long-term impacts.
News summary provided by Gemini AI.
If lawmakers can’t reach a deal, Stier wrote, Trump and Vought “will have enormous latitude to determine which services, programs, and employees can be sidelined, decisions that could go far beyond what has occurred during past shutdowns.”
Beyond the Antideficiency Act, which says the government cannot spend money or incur debts without Congress’ authority, the shutdown process has historically been guided by traditions, not laws.
In recent past shutdowns, hundreds of thousands of employees were furloughed, but the shutdowns did not result in mass permanent layoffs or significant reorganizations. Under federal law, federal workers also receive back pay for their time on furlough.
Trump and his congressional allies would be in charge of the government amid a shutdown. What can Trump do on his own?
OMB told agencies to ‘consider’ layoff notices
The Trump administration has already reduced the workforce by about 200,000, a number that could grow to 300,000 by the end of the year, Stier wrote. The administration gutted some agencies and programs including the Consumer Financial Protection Bureau and Voice of America.
WATCH: White House threatens mass federal firings if Congress fails to avoid a shutdown
This signals to Democrats that health care funding demands could backfire, she said, potentially causing further reductions in the size of the federal government.
Several questions remain, including how many employees could face layoffs and when. The memo says once fiscal year 2026 appropriations are enacted, agencies should revise their plans to reduce staff.
“I believe this memo indicates OMB will pursue a dual path of shutdown-related furloughs and a separate process of mass layoffs,” Sewell said. Whether the layoffs happen before or after funding is restored “is an open question,” Sewell said. “This certainly indicates the administration wants to cut these agencies and programs at any opportunity either now or in the future.”
“A shutdown provides no new legal authority to engage in widespread firings,” said Sam Berger, who works for the liberal Center on Budget and Policy Priorities and who worked at OMB during the Biden and Obama administrations.
Sen. Chuck Schumer, the Democratic Senate minority leader from New York, said the memo is an “attempt at intimidation” and predicted such firings would be reversed.
Social Security checks and other mandatory spending will continue
In previous shutdowns, border protection, medical care in hospitals, air traffic control, law enforcement and power grid maintenance were deemed essential and remained active during the shutdown.
Even continued services can be disrupted. During the 2018-19 shutdown, holiday travelers faced delays as many unpaid TSA staff and air traffic controllers didn’t come to work.
Administrations have a lot of leeway to define “essential” workers. During the 2013 shutdown, the Obama administration closed national parks. In 2018, the Trump administration kept many national parks open with limited services using previously paid park entrance fees to cover personnel costs; the Government Accountability Office concluded that this violated federal law.
There have been four shutdowns in recent decades that lasted more than one business day, according to the Committee for a Responsible Federal Budget.
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