The possibility of a federal government shutdown is growing, and this time, Trump administration officials are warning it could mean permanent job losses — not just temporary furloughs.
On Wednesday, the White House sent a memo to government agencies outlining standard shutdown procedures but also stating that reductions in force — permanent layoffs — could occur. In past shutdowns, the primary impact on federal workers has been delayed paychecks, with workers receiving back pay once the government reopens.
The memo marks a significant shift in tone. Democrats, including Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, condemned the mention of layoffs. Schumer called it “intimidation tactics,” while Jeffries accused Republicans of wanting “to ruin lives.”
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Republicans are seeking to extend government funding at current levels, with some additional spending for security, through late November. Democrats, meanwhile, are pushing for a fight over Affordable Care Act subsidies, which are set to expire in the coming months, warning that expiration could lead to premium increases.
The standoff has intensified ahead of an Oct. 1 deadline. Congressional leaders are not in Washington this week, and a planned White House meeting between Democratic lawmakers and the president was canceled.
The last shutdown, in 2018-2019, lasted 35 days — the longest in U.S. history. Under a 2019 law, federal workers are guaranteed back pay following a shutdown, though payments could be delayed. Basic services such as Social Security, Medicare and Medicaid would continue to operate, though residents might face slower response times from federal offices.
With both sides digging in and no active negotiations taking place, the odds of a shutdown are increasing by the hour, said one political analyst. There’s a lot of political gamesmanship right now, and it’s unclear how this will end.
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