Shutdown Update: Mass Layoffs at Four Federal Agencies

Week 2 of the federal shutdown has delivered positive news for millions of Americans but devastating news for tens of thousands of federal workers. 

As we reported last week, the feeding program for poor pregnant women and children (WIC) will get an infusion of cash to keep it going. President Trump has directed an undisclosed amount of tariff revenue to fund this program. The Department of Defense will also move funds around to ensure that our troops do not miss a paycheck.

At the same time, the administration announced that 4,200 federal workers would be laid off last Friday, October 10th. The mass layoffs are focused on a handful of agencies. 

The Left’s refusal to pass a clean continuing resolution means many federal workers face lost paychecks, while others will get pink slips. 

Four Agencies Facing Mass Layoffs: 

According to reporting in Government Executive:

1. Treasury Department: 1,446 employees
2. Health and Human Services (HHS): 1,300 employees 
3. Education Department (DOE): 450 employees
4. Housing and Urban Development Department (HUD): 446 employees

A few other agencies cut a smaller number of workers, including 190 employees at the Commerce Department, 176 employees at the Department of Homeland Security (DHS), and between 20 and 30 employees at the Environmental Protection Agency (EPA).

The layoffs may not be final for all impacted workers. Some workers may be rehired, and lawsuits could slow or halt future job eliminations. For example, at HHS, about 700 staffers (about half of those laid off) were reportedly rehired over the weekend.

Furthermore, two unions representing government workers have filed for a temporary restraining order to prevent the administration from advancing layoff plans. 

Why the RIFs?

A consequence of the federal government shutting down because Democrats in Congress have refused to pass a clean spending bill to fund the government for seven weeks—the same bill they have voted to pass 13 times—is Reductions in Force, or RIFs.

While RIFs don’t commonly occur during layoffs, they are a tool that an administration can use.

Prior to the shutdown, Russell Vought, director of the White House Office of Management and Budget (OMB), asked federal agencies to develop plans for layoffs in the event a deal could not be reached. 

Layoff plans were drawn up but delayed until October 10, 2025, to give Congress time to pass the CR. Unfortunately, despite multiple votes and passage in the House of Representatives, only a few Democrats and Democratic-caucusing Independents were willing to vote with Republicans for the CR to keep the government open.

This may be just the first round of RIFs. If Congress does not agree to continue funding the federal government at current spending levels, new actions could be on the table.

The irony of the Left’s opposition to a clean CR is that they are opposing the status quo. This CR does not reduce funding levels at all. It does not include any additional policy changes that they would disagree with. Instead, they want to use this spending bill to negotiate policy changes in healthcare that should be done during budget negotiations.

Bottom Line

The Left refuses to work with conservatives to keep the lights on in Washington. Federal workers are the latest casualty of their obstinacy.