On Oct. 1, Russell Vought, Director of the White House Office of Management and Budget, told House Republicans that mass layoffs of federal workers could begin within “a day or two” if the government shutdown persists. His warning marked a dramatic escalation in the administration’s handling of the budget standoff.
White House Confirms Layoffs Are “Imminent”
White House press secretary Karoline Leavitt reiterated that layoffs are forthcoming, though she declined to specify which agencies or how many workers would be affected.
She emphasized that President Donald Trump has directed OMB to coordinate with agencies on workforce cuts, describing them as “a consequence of this government shutdown.”
Trump’s Shutdown Strategy
President Trump has framed the shutdown not only as leverage in negotiations with Democrats, but also as a chance to reshape the federal government. On Sept. 30, he stated: “A lot of good can come down from shutdowns. We can get rid of a lot of things that we didn’t want.”
Traditionally, shutdowns have resulted in temporary furloughs for nonessential federal workers, not mass layoffs. Trump’s approach would mark a break from precedent, aligning with his administration’s broader push to downsize the federal workforce under the Department of Government Efficiency.
Funding Cuts Target Democratic Priorities
Vought also announced that the administration is freezing $18 million in infrastructure funding for projects in New York, including the 2nd Avenue subway expansion and Hudson River rail tunnel. He argued that the funds were tied to “unconstitutional DEI principles.”
In addition, the administration is canceling $8 billion in what Trump called “Green New Scam funding” for projects across 16 Democratic-led states.
Historical Context
Past shutdowns have been disruptive, but they have not included permanent layoffs on a large scale. Trump’s threat to use the shutdown as a mechanism to eliminate programs and employees represents a significant departure from traditional practice and underscores the political stakes of the standoff.
