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Thousands of US federal employees face permanent job losses as the government shutdown enters its third week, sparking legal battles and intensifying political tensions.
The White House on Friday, October 10, 2025, announced the commencement of layoffs for federal workers, escalating the ongoing United States government shutdown that has now stretched into its third week. This move follows earlier threats by the administration in response to the prolonged budgetary impasse.
Russell Vought, Director of the White House Office of Management and Budget (OMB), confirmed the initiation of "RIFs" (reductions-in-force) via social media. These layoffs represent a significant departure from typical government shutdowns, where employees are usually furloughed with the expectation of back pay upon resolution.
The current shutdown, which began on Wednesday, October 1, 2025, at 7:01 AM EAT (12:01 AM EDT), is the result of Congress failing to pass appropriations legislation for the 2026 fiscal year. This marks the 11th government shutdown in US history leading to curtailed services and the third under the current administration. Approximately 900,000 federal employees were initially furloughed, with an additional 700,000 working without pay.
The administration's decision to implement permanent layoffs, rather than temporary furloughs, has been framed by critics as an aggressive tactic to pressure Democratic lawmakers. Reports indicate that the administration had instructed federal agencies to prepare for such reductions even before the shutdown began.
Federal workers are generally entitled to 60 days' notice before a reduction in force. However, the legality of these mass layoffs during a government shutdown has been challenged. The Antideficiency Act prohibits the government from obligating or expending unappropriated money, which some officials argue would make the RIF process, including severance payments, unlawful.
Democratic lawmakers have strongly criticised the layoffs, with Representative Mike Levin stating that such firings would be "illegal and unconstitutional." Senator Susan Collins also expressed strong opposition, calling the move "poorly timed" and "another example of this administration's punitive actions toward the federal workforce."
The American Federation of Government Employees (AFGE) and the AFL-CIO have filed a lawsuit in a federal District Court in Northern California, seeking a temporary restraining order to block the layoffs. AFGE President Everett Kelley condemned the actions as "disgraceful," asserting that federal workers are being used as "pawns for the political and personal gains of the elected and un-elected leaders."
The lawsuit alleges that the administration's scheme to order mass firings is unlawful, particularly as it may involve federal employees working during the shutdown to carry out the termination of their colleagues.
The layoffs are expected to have significant implications for the affected federal workers and their families, as well as for the delivery of critical government services. Beyond the immediate financial strain, the move could also lead to a loss of institutional knowledge and expertise within federal agencies, potentially jeopardising their missions even after the government reopens.
The aggressive stance taken by the administration, particularly the threat of permanent job losses, is likely to further entrench the political divide between the White House and Congress, making a swift resolution to the shutdown more challenging.
The full scope of the layoffs, including the exact number of affected employees across all agencies, remains somewhat unclear. While over 4,000 notices have been issued, the White House has described the reductions as "substantial" without providing comprehensive figures.
A key legal question revolves around whether the administration can legally carry out these permanent layoffs during a shutdown, especially given the Antideficiency Act. The outcome of the lawsuit filed by the unions will be crucial in determining the legality and future of these actions.
The government shutdown commenced on October 1, 2025. Layoff notices began to be issued on October 10, 2025. The lawsuit filed by the AFGE and AFL-CIO is currently before a federal court, with a hearing on the temporary restraining order scheduled for Wednesday, October 16, 2025.
All eyes will be on the federal court's decision regarding the temporary restraining order, which could halt further layoffs. The ongoing negotiations between the White House and Congress to resolve the budget impasse will also be critical. The impact of these layoffs on public services and the broader US economy will be closely monitored.
