Administration Reveals Federal Employee Layoffs as Funding Gap Nears Three-Week Mark

Administration officials confirmed the start of government employee layoffs on Friday, following through on earlier warnings in response to the ongoing US government shutdown, which is now poised to stretch into its third consecutive week.

Official Announcement and Initial Details

Russell Vought wrote on a public platform that “reductions in force have begun,” indicating the official process for terminating staff.

While Vought provided no details on which departments were affected, a treasury spokesperson confirmed that notices had been issued within that department. Furthermore, a DHS spokesperson indicated that staff reductions would take place at the CISA. Also, a labor organization representing federal workers confirmed that members at the Department of Education would be affected by the reduction in force.

Union Response and Legal Challenges

Labor representatives warned that the terminations would have “devastating effects” on services used by the public and vowed to contest the actions in court.

“It is disgraceful that the government has exploited the government shutdown as an pretext to wrongfully terminate thousands of workers who provide critical services to the public across the country,” said Everett Kelley, who leads the AFGE.

The largest labor federation in the US reacted to the news, declaring, “Labor organizations will see you in court.”

Legislative Impasse and Funding Battle

Congressional Democrats have declined to vote for a Republican-backed legislation to reopen the government unless it contains provisions related to health policy. Following multiple unsuccessful votes, the GOP leadership in the Senate have put the chamber in recess until next Tuesday, meaning the standoff is unlikely to be ended soon.

At a media briefing, the Republican House speaker, the speaker, blasted opposition lawmakers for rejecting the Republican bill, which passed in the lower chamber on a largely partisan basis.

“This is the last paycheck that government employees will see until Washington Democrats decide to do their job and reopen the government,” the speaker stated. “Starting next week, American service members, many of whom live on tight budgets, are going to miss a full paycheck.”

Judicial and Practical Limits

Last week, unions sought a court injunction to block the government from implementing any reductions in force during the funding gap. Additionally, a court official ordered the government to disclose details on termination strategies, affected agencies, and if any federal employees had been recalled to carry out staff reductions.

A report argued that a funding lapse limits the ability of the administration to conduct terminations, citing guidance that admitted any permanent layoffs need to have been initiated before the shutdown began.

Consequences for Employees

The layoffs occurred on the very day that federal workers got only a incomplete payment covering the final days of the previous month but not the start of the current month, since funding lapsed at the beginning of the month.

Max Stier, the head of the non-profit Partnership for Public Service, criticized the political stalemate’s impact on government workers.

This is unjust to make government staff suffer because our leaders in Congress and the White House have not succeeded to keep our federal operations running,” the advocate said. The flight regulators, VA nurses, wildland firefighters and food inspectors are not at fault for this government shutdown.”

A notable point is that members of Congress and top administration officials are continuing to be paid amid the shutdown.

Christine Brewer
Christine Brewer

A tech journalist specializing in UK digital ecosystems, with over a decade of experience covering innovation and startup culture.