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OMB Orders Layoff Plans for Potential Sept. 30 Shutdown, Signaling Permanent Cuts

The memo departs from past furlough practice by targeting non‑statutory programs for elimination.

Overview

  • Federal agencies were told to identify functions without legal obligations and staff for possible permanent elimination if funding lapses on Sept. 30.
  • OMB said it has received contingency plans from many, but not all, agencies and the memo has not been posted publicly.
  • The guidance indicates essential operations such as Social Security, law enforcement, and air traffic control would continue as thousands risk going unpaid.
  • OMB Director Russ Vought cast permanent reductions as leverage in the budget fight, while Senate Democratic leader Chuck Schumer called the move intimidation.
  • Politico first reported details of the directive, and White House and OMB spokespeople declined to comment.