Overview

• An OMB memo directs agencies to identify programs losing discretionary funds on Oct. 1 and to prepare reduction‑in‑force plans for positions deemed inconsistent with the president’s priorities.
• Democratic leaders condemned the move as an intimidation tactic, with Hakeem Jeffries telling OMB to “get lost” and Chuck Schumer arguing any firings would be challenged or reversed.
• Republicans back a ‘clean’ continuing resolution to fund the government into November, while Democrats refuse to advance it without protections for Affordable Care Act premium subsidies and rollbacks of Medicaid cuts.
• Trump canceled a planned meeting with Schumer and Jeffries, blamed Democrats for a potential lapse, and said a shutdown “could be” likely as the Senate returns Sept. 29 ahead of the Sept. 30 deadline.
• The memo signals a break from typical shutdown furlough plans by contemplating permanent layoffs, prompting union warnings and raising the operational stakes if Congress fails to reach a deal.