Recent discussions have emerged about potential layoffs in the federal government if budget negotiations continue to fail, according to reports from Fox News Digital. On a call with House Republicans, Russ Vought, the Director of the Office of Management and Budget, indicated that layoffs, termed as “RIF” or reductions in force, could happen almost immediately—possibly within a couple of days.
Vought’s comments come after Senate Democrats have repeatedly rejected GOP funding proposals to support federal agencies. Mike Johnson, the Speaker of the House, defended Vought against criticisms regarding the prospect of layoffs, suggesting that Democrats have put the country in a “terrifying situation” by not supporting the GOP’s funding plans.
Vought later clarified that the decision to consider layoffs reflects the agency head’s assessment based on current budget levels and aligns with the priorities established during the Trump administration. This guidance follows an earlier memorandum from the OMB that advised agencies to prepare for potential layoffs amid the government shutdown.
As for the negotiations, there’s no clear indication of a breakthrough as multiple funding plans have been shot down in the Senate over the past day. The Senate is expected to revisit the funding measure, but this will be postponed due to the observance of Yom Kippur starting Thursday.
The funding bill in question aimed to set spending priorities until November 21 for fiscal year 2026 and passed the House largely along party lines. This measure primarily continues the current funding levels and additionally allocates $88 million for lawmaker security, as well as for the White House and judicial branches.
Democrats have expressed anger over the situation, primarily surrounding health care funding debates. They insist that any bill must include an expansion of Obamacare tax subsidies, which were bolstered during the pandemic but are set to expire soon.
