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On the first day of the government shutdown, Office of Management and Budget Director Russell Vought informed House Republicans that federal employee layoffs are expected within "one to two" days. According to two GOP sources on the conference call, Vought did not provide specific details about the layoffs but attributed the situation to Democratic opposition to a short-term Republican funding plan.
The shutdown began as Democrats in Congress rejected the Republican proposal, demanding extensions on enhanced ObamaCare tax credits. Vought had previously issued a memo suggesting that agencies consider issuing Reduction in Force (RIF) notices to employees in certain programs during the shutdown. This memo was seen as an effort to pressure Democrats into accepting the Republican funding bill.
White House Press Secretary Karoline Leavitt confirmed the impending layoffs, stating they would occur "very soon." She emphasized that the RIFs are necessary due to the ongoing shutdown. In typical shutdowns, non-essential employees are furloughed or work without pay, eventually receiving back pay. However, Vought's memo hints at permanent layoffs for non-essential workers.
Vice President JD Vance also addressed the situation, stating, "We are going to have to lay some people off if the government shutdown continues." He acknowledged the undesirability of the situation but emphasized the need to maintain essential services.
The potential for permanent layoffs has sparked controversy, with Democrats arguing that the shutdown does not grant the Trump administration new powers to fire federal employees.
As the shutdown continues, the Senate has rejected rival short-term funding measures for the second day in a row. The situation remains tense, with potential legal battles looming over any attempts to lay off federal workers permanently.