According to an internal memo viewed by the magazine before being distributed to agencies, the office requested each federal entity to identify programs, projects, and activities that would cease once flexible funding ends on October 1st, and for which no alternative source of funding is available. In these cases, the office instructed agencies to draft plans for permanent employee separations, instead of merely relying on temporary leaves as was done in previous shutdowns.
This step represents a significant shift in handling governmental shutdowns, as traditionally over the past decades, employees were laid off temporarily and then reinstated immediately once the government reopened and Congress approved funding. Now, it seems that office director Russ Vought is using the threat of permanent layoffs as a pressure tool in the standoff between President Donald Trump’s administration and congressional Democrats over the budget.
The memo indicated that “programs not benefiting from additional mandatory funding will be the most affected by the shutdown.” Agencies were also asked to submit their proposed plans to the Office of Management and Budget and issue notices to employees, even those typically exempted or placed on temporary leave during funding lapses.
Last Friday, President Donald Trump did not rule out a government shutdown after the Senate rejected a bill to fund it temporarily. Trump told reporters, “We will continue negotiating with the Democrats, but I think this may lead to a government shutdown for some time.”
This development comes as Congress faces a severe deadlock just days before the end of the fiscal year on September 30th. The House of Representatives passed a temporary bill to fund the government until November 21st, but Senate Democrats refused to pass it, demanding Republicans sit for negotiations on a comprehensive funding package that might include extending Affordable Care Act subsidies (Obamacare).
