Administration Reveals Federal Employee Layoffs as Funding Gap Approaches Three-Week Mark

Administration officials disclosed the start of federal worker layoffs on the end of the week, following through on earlier warnings in response to the ongoing US government shutdown, which is now poised to stretch into its third straight week.

Formal Statement and Initial Details

The director of the White House budget office wrote on a public platform that “RIFs have begun,” indicating the government’s procedure for letting employees go.

While the official did not specify which departments were impacted, a treasury spokesperson stated that notices had been issued within that department. Furthermore, a DHS representative noted that layoffs would also occur at the Cybersecurity and Infrastructure Security Agency. Moreover, a union for federal workers confirmed that members at the Education Department would be affected by the staff cuts.

Union Response and Legal Challenges

Labor representatives cautions that the layoffs would have “severe consequences” on services used by millions of Americans and vowed to challenge the moves in the legal system.

“It is disgraceful that the government has exploited the government shutdown as an pretext to illegally fire numerous employees who provide essential functions to the public across the country,” stated Everett Kelley, who leads the American Federation of Government Employees.

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

Legislative Impasse and Budget Dispute

Congressional Democrats have refused to support a GOP-supported bill to restore funding unless it includes healthcare-centered concessions. After repeated failed attempts, the GOP leadership in the Senate have put the chamber in recess until the following week, meaning the deadlock is unlikely to be resolved soon.

At a press conference, the GOP leader in the House, Mike Johnson, blasted opposition lawmakers for rejecting the GOP bill, which passed in the House on a near party-line vote.

Federal workers’ final pay that 700,000 federal workers will see until Washington Democrats decide to do their job and end the shutdown,” the speaker said. “Starting next week, American service members, who often live paycheck to paycheck, are going to miss a complete payment.”

Legal and Operational Constraints

Previously, labor groups sought a temporary restraining order to block the government from carrying out any layoffs during the shutdown. Additionally, a court official directed the government to provide specifics on layoff plans, affected agencies, and if any government staff had been recalled to carry out staff reductions.

A report contended that a government shutdown restricts the authority of the government to carry out firings, referencing guidance that admitted any permanent layoffs need to have been started before the shutdown began.

Impact on Workers

The layoffs took place on the same day that government employees got only a partial paycheck for the final days of September but excluding the start of October, since appropriations expired at the start of the month.

A public service advocate, the president of the non-profit Partnership for Public Service, criticized the political stalemate’s impact on federal employees.

This is unjust to make government staff bear the burden because our elected officials in the legislature and the White House have failed to keep our government running,” the advocate stated. The flight regulators, VA nurses, wildland firefighters and food inspectors are not responsible for this funding crisis.”

A notable point is that members of Congress and senior White House leaders are still receiving salaries during the shutdown.

David Gregory
David Gregory

A seasoned fintech journalist with over a decade of experience covering blockchain technology and digital asset markets across Europe.