WASHINGTON, Oct. 3 (Dnn Post) With the U.S. federal government in its second day of a shutdown, White House officials have warned that layoffs could reach into the thousands if congressional leaders fail to reach a funding deal.
The White House said federal agencies are preparing for widespread workforce reductions after the appropriations expire on October 1.
White House spokeswoman Karoline Leavitt told reporters that while many employees will be laid off, some of the layoffs are expected to be permanent if lawmakers restore funding.
Government officials and legal experts have long viewed the closures as a potential escalation under the Deficit Prevention Act. But this time, the administration has pushed agencies to develop plans to convert some furloughs into permanent layoffs.
Union Chief: “Any Forced Terminations Now Would Be Illegal
Labor union leaders strongly rejected the threat of mass firings during a shutdown, accusing the administration of violating federal law. “Any forced terminations now would be illegal under appropriations statutes. according to Politico,
Unions have already taken legal action, suing the Office of Management and Budget and the Office of Personnel Management for ordering agencies to prepare “reduction in force” (RIF) plans ahead of the shutdown’s start..
Across the government, the financial stakes and disruption risk are enormous. Before the shutdown began, estimates showed that up to 750,000 federal employees might be furloughed, costing the economy hundreds of millions in lost pay per week
Senior Officials Warn Mass Firings During Shutdown Could Breach Federal Law
Some senior officials have privately warned that carrying out mass firings during a shutdown could itself violate the law. They note that the Antideficiency Act prohibits incurring obligations without funding and that terminations without proper notice could invite legal challenges. According to Washington post
In coming days, Congress will face intense pressure to pass emergency legislation to restore funding. If that fail, the White House may begin enacting layoffs as early as next week.
If carried out, such cuts could reshape federal operations, affect service delivery, and deepen the stakes of the budget standoff.
