The White House Office of Management and Budget (OMB) is directing federal agencies to prepare reduction-in-force (RIF) plans in case of a government shutdown. These plans will specifically target federal employees who work for programs that are not legally required to continue in the event of a partial government shutdown.
Congress has been at an impasse over a budget continuing resolution, with the House passing a GOP-backed proposal and the Senate rejecting it. The lack of a spending agreement could lead to a partial government shutdown starting October 1, 2025, as both parties remain firm on their demands.
Directives from the Memo
The possibility of RIFs was put forth in an OMB memo, obtained and reported by POLITICO, that instructs agencies to do the following as part of their shutdown planning:
- Identify Programs at Risk: Agencies must pinpoint programs, projects, and activities (PPAs) that meet three criteria:
- Discretionary funding lapses on October 1, 2025.
- No alternative funding source is available (e.g., H.R. 1).
- The PPA is not aligned with President Donald Trump’s priorities.
- Consider Issuing RIF Notices: Employees working on these PPAs should receive RIF notices, even if they would typically be excepted or furloughed during a funding lapse.
- Submit RIF Plans to OMB: Agencies are required to send their proposed RIF plans to OMB for review and approval.
- Revise RIFs Post-Shutdown: Once FY2026 appropriations are enacted, agencies may adjust RIFs to retain only the minimal staff necessary to fulfill statutory obligations.
This is the wording from the memo regarding 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. Therefore, consistent with applicable law, including the requirements of 5 C.F.R. part 351, agencies are directed to use this opportunity to consider Reduction in Force (RIF) notices for all employees in programs, projects, or activities (PPAs) that satisfy all three of the following conditions: (1) discretionary funding lapses on October 1, 2025; (2) another source of funding, such as H.R. 1 (Public Law 119-21) is not currently available; and (3) the PPA is not consistent with the President’s priorities. RIF notices will be in addition to any furlough notices provided due to the lapse in appropriation.
RIF notices should be issued to all employees working on the relevant PPA, regardless of whether the employee is excepted or furloughed during the lapse in appropriations.
Programs That Will Continue
OMB told POLITICO that certain core functions will remain operational regardless of a partial government shutdown, including:
- Social Security and Medicare
- Veterans benefits
- Military operations
- Law enforcement
- Immigration and Customs Enforcement (ICE)
- Customs and Border Protection (CBP)
- Air traffic control
Implications
This approach is different from past shutdowns, where furloughs were temporary and employees were typically reinstated with back pay once funding resumed. By pushing for permanent reductions, the administration is leveraging the shutdown to reduce the size of the federal workforce, which has been a priority for the Trump administration.
Why Does the Federal Government “Shut Down?”
Before 1980, the concept of a federal government “shutdown” did not exist. This was not because there were instances when Congress failed to allocate funds for the government’s continued operations. Such situations were, and still are, relatively common.
However, even when funds were not appropriated, federal employees continued to work and were paid (usually with a slight delay until funds were approved). The situation was resolved without the political drama that has become prevalent since 1980.
The individual responsible for inventing the shutdown was Benjamin Civiletti, who served as the attorney general for President Jimmy Carter.
Civiletti clarified his “either exists or it does not” rule in a legal opinion issued in 1980. He concluded that the president possesses the constitutional authority to perform essential functions and ensure the government’s “workability.” This distinction is the basis for the distinction between essential and nonessential workers.
