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3h ago

White House Signals Federal Layoffs Within Days as Shutdown Begins

The administration is deploying reductions in force with targeted funding freezes in a break from past furlough-only shutdowns.

Russell Vought, director of the Office of Management and Budget (OMB), speaks to reporters outside the West Wing of the White House in Washington, DC, on July 17, 2025.
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Overview

  • OMB Director Russell Vought told House Republicans some agencies will begin terminating employees within one to two days, as Press Secretary Karoline Leavitt said layoffs are “imminent,” while Vice President J.D. Vance said no final decisions have been made.
  • The U.S. Patent and Trademark Office implemented a reduction in force affecting about 1% of its workforce—roughly 140 people—with the agency also moving to close its Denver regional office.
  • OMB moved to withhold $18 billion for New York City infrastructure projects and announced the cancellation of roughly $8 billion in Energy Department funding for projects across multiple states.
  • Federal employee unions and advocacy groups, including AFGE and Democracy Forward, filed lawsuits challenging the legality of planned layoffs and the administration’s funding actions.
  • Hundreds of thousands of federal workers have been furloughed on day one of the shutdown, and key government data releases such as the monthly jobs report are set to be suspended.