White House Reveals Federal Worker Layoffs as Funding Gap Approaches Third Week

Administration officials disclosed the start of federal worker layoffs on Friday, following through on prior threats linked to the continuing federal funding lapse, which is set to stretch into its third straight week.

Official Announcement and Initial Details

Russell Vought wrote on social media that “RIFs have begun,” indicating the government’s process for letting employees go.

While the official did not specify which agencies were affected, a representative from the Treasury Department stated that layoff warnings had been issued within that department. Additionally, a Department of Homeland Security representative noted that layoffs would also occur at the Cybersecurity and Infrastructure Security Agency. Moreover, a labor organization representing federal workers announced that members at the Department of Education would be impacted by the staff cuts.

Labor Reaction and Court Actions

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

This is shameful that the government has used the government shutdown as an excuse to illegally fire thousands of workers who provide critical services to communities nationwide,” said Everett Kelley, who leads the American Federation of Government Employees.

The largest labor federation in the US responded to the announcement, declaring, “America’s unions will see you in court.”

Political Standoff and Budget Dispute

Lawmakers from the Democratic party have refused to vote for a GOP-supported bill to reopen the government unless it includes provisions related to health policy. After multiple unsuccessful votes, the Senate’s Republican leaders have adjourned the Senate until next Tuesday, meaning the standoff is not expected to be ended soon.

During a media briefing, the GOP leader in the House, the speaker, criticized opposition lawmakers for not supporting the GOP bill, which was approved in the lower chamber on a near party-line vote.

“This is the last paycheck that 700,000 federal workers will see until opposition leaders decide to fulfill their duties and reopen the government,” Johnson said. “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 court injunction to block the government from carrying out any layoffs during the shutdown. Moreover, a federal judge ordered the administration to disclose details on layoff plans, affected agencies, and if any government staff had been brought back to carry out staff reductions.

A report argued that a government shutdown limits the ability of the government to carry out firings, citing official advice that admitted any permanent layoffs need to have been started before the shutdown began.

Impact on Workers

The layoffs occurred on the same day that federal workers got only a partial paycheck for the final days of the previous month but not the beginning of the current month, since funding lapsed at the beginning of the month.

A public service advocate, the head of the advocacy group, criticized the gridlock’s effect on federal employees.

This is unjust to make federal employees suffer because our leaders in Congress and the administration have failed to keep our government running,” Stier said. “Our air traffic controllers, veterans’ healthcare providers, wildland firefighters and safety officials are not responsible for this government shutdown.”

The irony is that members of Congress and top administration officials are still receiving salaries amid the shutdown.

Jennifer Nguyen
Jennifer Nguyen

A financial analyst with over a decade of experience in global markets, specializing in portfolio management and risk assessment.