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White House Warns Of Mass Layoffs If Shutdown Hits

Photo by Kristina Volgenau / Unsplash

The White House budget office has directed federal agencies to prepare for sweeping job cuts if Congress fails to pass a funding bill by September 30.

The Office of Management and Budget memo, obtained by CNN, ordered agencies to identify programs without alternative funding that could face permanent reductions in force.

The move marks a sharp departure from past shutdown procedures and underscores President Donald Trump’s push to shrink the federal bureaucracy. The memo stated that only “core Trump Administration priorities” would continue to receive funding during a lapse.

Democrats blasted the plan as intimidation. Senate Minority Leader Chuck Schumer called it a scare tactic, while House Minority Leader Hakeem Jeffries accused OMB Director Russell Vought of political gamesmanship.

The standoff comes as Democrats demand extensions of Obamacare subsidies in exchange for funding, while the White House insists on a “clean” extension to keep the government open.

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