The White House has instructed federal agencies to develop contingency plans for extensive employee terminations should a government shutdown occur, diverging from standard procedures in prior funding crises.
This directive, detailed in a memo from the Office of Management and Budget (OMB), urges agencies to outline "reduction in force" strategies targeting programs, projects, and activities reliant on discretionary funding set to expire on October 1.
Such measures would affect initiatives lacking alternative appropriations and those not aligned with the President's policy objectives.
The OMB emphasized that these preparations remain precautionary, expressing optimism that congressional Democrats will prevent a shutdown through timely action.
This development follows President Donald Trump's cancellation of a planned meeting with Democratic leaders Chuck Schumer and Hakeem Jeffries on Tuesday.
Trump cited the Democrats' proposals as "unserious and ridiculous," stating on social media that no productive dialogue could ensue.
The impasse centers on budget negotiations, with Republicans advancing a short-term funding extension to November 20, a measure passed in the House but halted by Senate Democrats.
Agencies must now submit detailed reduction-in-force proposals to the OMB and notify affected personnel accordingly.
The memo highlights that programs without mandatory funding infusions will face the most significant impacts during any operational halt.
Historically, government shutdowns have involved temporary furloughs for non-essential staff, but this approach signals a potential shift toward permanent workforce reductions.
Since assuming office in January, the administration has pursued aggressive downsizing of the 2.4 million-strong federal civilian workforce, deeming it inefficient and oversized.
By the close of 2025, approximately 300,000 positions are projected to be eliminated, according to Office of Personnel Management Director Scott Kupor.
These efforts, spearheaded through the Department of Government Efficiency, have already resulted in thousands of dismissals.
Democrats have sharply criticized the memo as an intimidation strategy rather than a genuine governance tool.
"This is an attempt at intimidation," Senate Democratic leader Chuck Schumer said in a statement.
He further asserted that the administration has targeted federal workers from the outset to instill fear, predicting judicial reversal of any resulting dismissals.
The controversy underscores deepening partisan divides over fiscal priorities, including Democratic demands to reinstate healthcare funding curtailed by the July "One, Big Beautiful Bill," which slashed Medicaid resources for low-income and disabled individuals.
As the September 30 deadline looms, the risk of disrupted federal services grows, potentially halting non-essential operations and straining agency resources.
Negotiations remain stalled, with both parties exchanging blame for the escalating tensions.