President Donald Trump is using the possibility of a government shutdown to further reduce the federal workforce.
The federal fiscal year ends Tuesday, Sept. 30. If there is no federal budget in place, the government’s authority to spend money ends that day.
Because Congress rarely approves a budget on time, new federal fiscal years often begin with what’s called a Continuing Resolution to keep government running while Democrats and Republicans hammer out an agreement.
The annual standoff is even more entrenched this year as the White House wants cuts and Democrats want spending, leading the federal Office of Management and Budget to issue a memo telling agencies to brace for what might take place.
According to a copy of the memo released by Politico, federal executives are being urged to use any shutdown as a chance to permanently eliminate jobs where funding for them no longer exists, cannot be supported under other funding, or are “not consistent” with the policies of the president.
Social Security, Medicare, veterans benefits, the military, law enforcement, Immigration and Customs Enforcement, Customs and Border Protection, and air traffic control would be funded no matter what, according to Politico.
The memo noted that “congressional Democrats are signaling that they intend to break” the practice of passing a Continuing Resolution and are blocking passage of a Republican-supported version “due to their partisan demands.”
The memo added that through the “Big Beautiful Bill,” there are “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.”
“Programs that did not benefit from an infusion of mandatory appropriations will bear the brunt of a shutdown, and we must continue our planning efforts in the event Democrats decide to shut down the government.”
Will the government shut down next week?
The memo added that “programs whose funding would lapse and which are otherwise unfunded” are “no longer statutorily required to be carried out.”
Agencies are therefore directed to “use this opportunity to consider Reduction in Force (RIF) notices for all employees in programs, projects, or activities (PPAs) that satisfy all three of the following conditions: (1) discretionary funding lapses on October 1, 2025; (2) another source of funding, such as H.R. 1 (Public Law 119-21) is not currently available; and (3) the PPA is not consistent with the President’s priorities.” H.R. 1 is the official name for the One Big Beautiful Bill.
“RIF notices will be in addition to any furlough notices provided due to the lapse in appropriation. RIF notices should be issued to all employees working on the relevant PPA, regardless of whether the employee is excepted or furloughed during the lapse in appropriations,” the memo said.
The memo made clear that job cutting should not stop when the budget is eventually approved.
“Once fiscal year 2026 appropriations are enacted, agencies should revise their RIFs as needed to retain the minimal number of employees necessary to carry out statutory functions,” the memo said.
Prospects for congressional action before the end of the fiscal year are dim, as noted by The Wall Street Journal.
The Senate returns on Monday, one day before the existing budget ends. The current plan is to vote only on the House-passed proposal, which simply funds existing programs through Nov. 21.
The House will not return to session until after Oct. 1. Because any agreement needs the approval of both chambers of Congress, the Senate would have to either approve the House version or run the risk that the House will reject an altered Continuing Resolution, possibly leading to a shutdown.
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