White House Budget Director Says Federal Layoffs Imminent

(MENAFN) On the first day of the US government shutdown, the White House budget director alerted House Republicans that federal layoffs could begin within “one to two” days, according to two GOP sources who participated in the conference call discussing the situation.

Unlike prior shutdowns where federal workers were furloughed, this time dismissals are being considered, raising legal concerns from unions and Democrats over the legality of firing federal employees.

Last week, Office of Management and Budget Director Russell Vought issued a memo signaling that a significant reduction in the federal workforce might be necessary if the shutdown persists. However, the memo lacked specifics and placed blame on Democrats, accusing them of forcing the administration’s hand.

Vice President JD Vance reinforced this message during a White House briefing, stating layoffs would be imminent if the shutdown continues.

"We are going to have to lay some people off if the shutdown continues. We don’t like that. We don’t necessarily want to do it," Vance told reporters. "But we’re going to do what we have to keep the American people’s essential services continuing to run," he said, as reported by media.

Vance dismissed accusations that the administration’s actions were politically motivated against federal employees.

"We’re targeting the people’s government so that as much as possible of the essential services can continue to function," he emphasized.

Vought’s memo directed agencies to begin issuing reduction-in-force notices to employees involved in programs and projects no longer funded due to the shutdown, particularly those “not consistent with the President’s priorities.” The memo did not specify how many workers could be affected.

During the same Wednesday virtual call, Vought also warned that the Women, Infants, and Children (WIC) nutrition program is at risk of exhausting its funds within a week if the government remains closed. The National WIC Association, representing state and local members, confirmed to media that the program could run out of money in one to two weeks.

Other matters discussed included the halting of military funding and federal employee pay, both suspended during the shutdown, and the partial closure of national parks.

Responding to the administration’s threat to lay off federal workers, House Minority Leader Hakeem Jeffries argued the layoffs were inevitable regardless of the shutdown and accused Republicans of using “ideology” to inflict hardship.

Meanwhile, the Senate rejected funding proposals from both Democrats and Republicans for the second time in one day. Despite holding a 53–47 majority, Senate Republicans need bipartisan support to advance any funding bill.

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