The Trump administration has initiated the process of laying off thousands of federal workers in the United States, a move aimed at increasing pressure on Democratic lawmakers amidst an ongoing government shutdown. White House Office of Management and Budget (OMB) Director Russell Vought announced on Friday, October 10, 2025, that "The RIFs have begun," referring to "reductions in force."

A spokesperson for the OMB confirmed the commencement of these cuts, describing them as "substantial." By Friday evening, the administration disclosed that seven agencies had started issuing layoff notices to over 4,000 employees.

Context of the Shutdown and Layoffs

The US government shutdown, which began on Tuesday, October 1, 2025, stems from an impasse between congressional Republicans and Democrats over a spending bill. This marks a significant escalation from typical shutdowns, which usually involve furloughs where employees are sent home temporarily and later recalled with back pay.

President Trump and administration officials, including Director Vought, have consistently indicated that the shutdown presents an opportunity to reduce the federal workforce. Vought, who was confirmed as OMB Director in February 2025 for the second Trump administration, has been a proponent of "deconstructing the administrative state" and has previously stated a desire to inflict "trauma" on federal employees.

Impact on Federal Agencies and Services

The layoffs are affecting various federal departments. According to a court filing, approximately 315 employees at the Department of Commerce, 466 at the Department of Education, 187 at the Department of Energy, between 1,100 and 1,200 at the Department of Health and Human Services, 442 at the Department of Housing and Urban Development, 176 at the Department of Homeland Security, and 1,446 at the Department of Treasury received reduction-in-force notices.

Union leaders, such as Everett Kelley, National President of the American Federation of Government Employees (AFGE), have condemned the layoffs, calling them "disgraceful" and warning of "devastating effects" on services relied upon by millions of Americans. The AFGE, representing 800,000 federal and DC government workers, has pledged to challenge these moves in court.

Beyond direct job losses, the shutdown has already disrupted non-essential government services and led to hundreds of thousands of federal employees working without pay or being furloughed. This includes essential workers like air traffic controllers, who continue to work without immediate compensation, leading to flight delays at several US airports. The publication of official economic data, such as the US jobs report and the Consumer Price Index, has also been suspended, potentially hindering economic analysis.

Legal and Policy Implications

The legality of these permanent layoffs during a government shutdown has been a point of contention. While a 2019 law guarantees back pay for furloughed employees once a shutdown ends, the administration has reportedly threatened to circumvent this statute. Critics argue that the Antideficiency Act generally prohibits the government from incurring new expenses, such as severance payments associated with reductions in force, during a lapse in appropriations.

A federal judge in California had earlier ordered the Trump administration to provide details on its layoff plans by Friday, October 10, 2025. The AFGE has requested an earlier decision on its request for a temporary restraining order to block the reductions in force.

What to Watch

The immediate focus remains on the ongoing legal challenges to the layoffs and the political negotiations in Congress to end the shutdown. The Senate adjourned until Tuesday afternoon, October 14, 2025, indicating that the stalemate is unlikely to be resolved before then. The impact on federal employees' next paychecks, particularly for military personnel who are expected to miss their October 15 payment, will be a critical development.