White House Warns of Mass Layoffs if Democrats Force Shutdown

White House press secretary Karoline Leavitt sounded the alarm Monday, warning that federal agencies are preparing mass layoffs if Democrats refuse to advance a stopgap spending bill and instead allow the government to shut down at the end of the month.

The standoff comes as Congress faces a Tuesday midnight deadline to keep the government open. The Republican-led House already passed a “clean” continuing resolution last week, but Senate Democrats have stalled the measure by attaching sweeping new demands.

“There will be layoffs if Democrats don’t keep the government open,” Leavitt told reporters during the daily press briefing. “We are nearing a government shutdown; we are nearing a funding deadline. The president wants to make this deadline. He wants to keep this government open.”

She accused Democratic leaders of playing politics at the expense of taxpayers and federal employees. “The president is giving Democrat leadership one last chance to be reasonable, to come to the White House today to try to talk about this, and now is not the time to try to get political points against Donald Trump,” Leavitt added.

The Office of Management and Budget (OMB) circulated internal guidance to agencies instructing them to prepare reduction-in-force (RIF) plans in the event of a shutdown on October 1. According to the memo, employees working on programs not legally mandated to continue without appropriations should expect furlough and RIF notices.

“With respect to those federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out,” the OMB guidance read. “RIF notices should be issued to all employees tied to those programs.”

In blunt terms, the memo blamed Democrats for abandoning decades of bipartisan precedent: “While Congress has usually passed short-term funding bills on a bipartisan basis, Democrats this year are making insane demands, including $1 trillion in new spending. Those demands risk forcing a shutdown.”

The administration is backing the House-passed H.R. 5371, which maintains current funding levels through November 21. Leavitt described it as the only responsible approach: “All we are asking for is a commonsense, clean funding resolution to keep the government open. The president supports enactment of a clean CR to ensure no discretionary spending lapse after Sept. 30, 2025, and OMB hopes the Democrats will agree.”

President Donald J. Trump, now in his second term, has already overseen significant reductions in the federal workforce through buyouts and targeted layoffs. Administration officials highlight those efforts as part of a broader push to downsize Washington’s bloated bureaucracy. A shutdown, however, could accelerate cuts if Democrats refuse to compromise.

The dispute has been further inflamed by Democratic demands for expanded health care access for illegal immigrants—an idea President Trump has flatly rejected as part of his aggressive immigration enforcement agenda. Since returning to office in January, his administration has presided over the deportation or voluntary departure of an estimated 2 million people.

Federal agencies have already activated contingency plans. Non-essential workers are bracing for furloughs, contractors face payment delays, and markets remain on edge, recalling the disruptions caused by past shutdowns.

Despite the looming crisis, Leavitt said the administration is still working toward an agreement. “We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary. But federal agencies must prepare for all outcomes,” she concluded.

With mere hours before the deadline, the ball is in Senate Democrats’ court—and the jobs of tens of thousands of federal employees hang in the balance.