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OMB Orders Agencies to Ready Deep Cuts if Funding Lapses

The directive escalates a stalled funding fight with the Senate short of votes for a stopgap before the Sept. 30 deadline.

US President Donald Trump during a meeting with Recep Tayyip Erdogan, Turkey's president, not pictured, in the Oval Office of the White House in Washington, DC, US, on Thursday, Sept. 25, 2025. Erdogan is visiting the White House for the first time in six years, bringing a slate of deals aimed at repairing the fractious ties between the two members of the North Atlantic Treaty Organization. Photographer: Yuri Gripas/Abaca/Bloomberg
Fachada del Capitolio, sede del Congreso de Estados Unidos. (AFP)
El 1 de octubre es la fecha límite para mantener la administración funcionando
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Overview

  • A White House budget memo instructs agencies to identify programs that lose authority on Sept. 30 and to prepare permanent reduction-in-force plans rather than rely on temporary furloughs.
  • Reports say agencies were told to consider staffing-reduction scenarios of roughly 40% and to study issuing RIF notices, according to AFP’s account of the directive.
  • The House approved a short-term extension to Nov. 21, but the Senate lacks the 60 votes to advance it after President Trump canceled talks with Democratic leaders.
  • Democratic leaders labeled the memo an intimidation tactic, unions reported limited notice, and OMB has not uniformly posted agency contingency plans online.
  • No mass layoffs have occurred, essential functions would continue under a lapse, and legal challenges are expected if permanent cuts move forward.