White House Reveals Government Employee Layoffs as Funding Gap Nears Third Week

The White House confirmed the start of federal worker layoffs on Friday, making good on prior threats in response to the ongoing US government shutdown, which is now poised to stretch into its third consecutive week.

Formal Statement and Early Information

Russell Vought wrote on social media that “reductions in force have begun,” referring to the official process for terminating staff.

Although the official did not specify which agencies were affected, a treasury spokesperson stated that layoff warnings had been distributed within that agency. Additionally, a DHS spokesperson indicated that layoffs would take place at the Cybersecurity and Infrastructure Security Agency. Moreover, a labor organization for federal workers confirmed that employees at the Department of Education would be impacted by the reduction in force.

Union Response and Legal Challenges

Union leaders cautions that the terminations would have “devastating effects” on public services relied upon by millions of Americans and vowed to contest the actions in the legal system.

“It is disgraceful that the government has exploited the funding lapse as an pretext to wrongfully terminate thousands of workers who deliver essential functions to the public across the country,” said Everett Kelley, who leads the American Federation of Government Employees.

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

Legislative Impasse and Funding Battle

Lawmakers from the Democratic party have refused to vote for a GOP-supported bill to reopen the government unless it contains provisions related to health policy. Following multiple unsuccessful votes, the Senate’s Republican leaders have adjourned the Senate until next Tuesday, meaning the deadlock is unlikely to be resolved soon.

During a press conference, the Republican House speaker, Mike Johnson, blasted opposition lawmakers for not supporting the GOP proposal, 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 fulfill their duties and end the shutdown,” the speaker stated. “Starting next week, American service members, many of whom live on tight budgets, 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 reductions in force during the shutdown. Moreover, a federal judge ordered the administration to provide specifics on termination strategies, impacted departments, and if any government staff had been brought back to carry out staff reductions.

A report argued that a funding lapse limits the authority of the administration to conduct terminations, referencing guidance that acknowledged any permanent layoffs need to have been initiated prior to the shutdown began.

Consequences for Employees

These terminations occurred on the very day that federal workers got only a incomplete payment for the final days of the previous month but excluding the start of October, since funding expired at the start of the period.

Max Stier, the president of the advocacy group, criticized the gridlock’s effect on federal employees.

“It is wrong to make government staff suffer because our leaders in the legislature and the White House have not succeeded to keep our federal operations open and operational,” Stier said. “Our air traffic controllers, veterans’ healthcare providers, smoke jumpers and food inspectors are not at fault for this government shutdown.”

The irony is that lawmakers and senior White House leaders are still receiving salaries amid the funding gap.

Seth Bowen
Seth Bowen

Marcus is a technology strategist with over 15 years of experience in IT consulting, specializing in digital transformation and cybersecurity.