Office of Management and Budget warns of impending federal layoffs amid government shutdown

The first day of the federal government shutdown brought a blunt warning from the Office of Management and Budget (OMB): if Congress does not reach a funding deal soon, federal employee layoffs will begin in a matter of days.

Russell Vought, OMB director, communicated on Wednesday to Republican lawmakers that the administration will not be able to sustain the workforce indefinitely without an approved budget. According to several attendees on the call, the cuts could be implemented within one to two days.

Previous OMB memo

Last week, Vought previewed this scenario in a memo to federal agencies. In that document, it instructed them to consider staff reduction notices (RIFs) in programs or activities that met the conditions of a shutdown. The text was interpreted as a signal that the administration sought to pressure Democrats to prevent the government from running out of funds.

White House confirms layoffs

Shortly after the call, Press Secretary Karoline Leavitt stated that the federal employee layoffs will occur in "two days, imminent, very soon."

"These RIFs are unfortunately going to have to happen very soon," she said at a briefing with reporters.

Unlike previous closures, in which nonessential employees were temporarily furloughed and then received back pay, the OMB memo leaves open the possibility that permanent layoffs will be implemented this time.

Warnings about social programs

During the call, Vought also warned that funding for the Women, Infants and Children (WIC) program could run out in a week or two if a funding agreement is not reached.

The Senate, meanwhile, rejected rival short-term funding proposals for the second day in a row on Wednesday, prolonging the stalemate in Congress.

Vice President Vance's remarks

Vice President Vance confirmed that the administration contemplates layoffs if the situation drags on:

"We are going to have to lay some people off if the government shutdown continues. We don't like that, we don't necessarily want to do it, but we're going to do what we have to do to keep the American peoples' essential services continue to run."

He added that if the shutdown drags on for several days or even weeks, staff reductions will be inevitable.