^{Photo: New York Post}

The White House has issued a stark warning to federal agencies: prepare for mass layoffs if Congress fails to fund the government before the current budget expires Tuesday. The Office of Management and Budget (OMB) instructed agencies whose appropriations run out Oct. 1 — and which lack alternative funding — to consider issuing reduction-in-force notices to employees, escalating the pressure on lawmakers to reach a deal.

Threat of Job Losses

Thousands of federal workers could see their positions at risk if a shutdown occurs. Historically, during government shutdowns, employees are temporarily furloughed rather than permanently laid off. For context, during the 2013 full government shutdown, approximately 850,000 federal employees were furloughed.

The OMB memo clarified that programs without mandatory funding support will bear the brunt of a shutdown. It also emphasized that the reduction-in-force directive applies to agencies “not consistent with the President’s priorities.”

“We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary,” the memo stated.

Political Standoff

Lawmakers face only days to negotiate a funding agreement. Democrats insist that any short-term funding measure include extensions of the Affordable Care Act’s enhanced tax credits, set to expire at the end of the year. Republicans, meanwhile, are pushing for a “clean” stopgap funding bill without policy additions.

Earlier this month, the House passed a temporary funding measure to keep the government open until Nov. 21, but Senate Democrats blocked it, citing concerns over health-care protections.

Lawmakers Respond

Democratic leaders immediately condemned the OMB warning as political intimidation. Senate Minority Leader Chuck Schumer called the directive “an attempt at intimidation,” accusing President Trump of using federal workers’ livelihoods as a bargaining tool rather than governing.

House Minority Leader Hakeem Jeffries went further, calling the plan a plot by Trump and “MAGA extremists” to target federal employees starting Oct. 1. Jeffries labeled OMB Director Russ Vought a “malignant political hack,” and vowed that Democrats would not be swayed by threats.

Jeffries highlighted the broader economic pressures facing Americans, citing ongoing challenges from Trump-era tariffs and rising inflation, and reminded voters that midterm elections in November 2026 will give the public a chance to respond.

Stakes for Government Workers

Federal employees, particularly those in agencies reliant on annual appropriations, face significant uncertainty. A shutdown would disrupt critical services, from national parks and visa processing to health and safety oversight, affecting millions of Americans.

With only 48 hours before funding expires, Congress remains locked in a high-stakes negotiation. How lawmakers respond in the coming days will determine whether federal workers face temporary furloughs, potential layoffs, and a broader government shutdown that could ripple across the economy.

The memo underscores the urgency of the standoff, highlighting the intersecting challenges of federal budgeting, health-care policy, and political brinkmanship.