The White House Office of Management and Budget has issued internal guidance to federal agencies, directing them to prepare reduction-in-force (RIF) plans in anticipation of a potential government shutdown starting on October 1. According to an internal memo obtained by Fox News, the OMB is urging agencies to consider issuing RIF notices to employees working on programs that are not legally required to continue if funding lapses. The memo explicitly states that such programs are no longer statutorily required to be carried out once funding is cut, signaling a potential shift in federal operations during a potential shutdown.
The guidance outlines that RIF notices will be issued in addition to furlough notices, targeting all employees tied to the affected programs. In addition, agencies are expected to revise these plans once Congress approves fiscal year 2026 appropriations, retaining only the staff necessary for core statutory functions. The memo highlights that while Congress has historically passed short-term funding bills on a bipartisan basis, this year’s political climate is different, with Democratic lawmakers pushing for significant spending increases that could lead to a shutdown.
A key development in the ongoing funding debate is the House’s passage of H.R. 5371, a clean continuing resolution (CR) that would extend current funding through November 21, which the administration supports. Nonetheless, the memo indicates that Democrats are blocking this bill in the Senate, complicating the path to an agreement. The White House has expressed hope that Democrats will avoid triggering a shutdown, with the OMB stating that the steps outlined in the memo will not be necessary if a resolution is reached.
Amid the tensions, the memo criticizes Democrats for their approach, suggesting that their push for $1 trillion in new spending is part of a broader trend of ‘insane demands’ that could destabilize the government’s financial operations. The White House emphasizes its support for a clean CR to prevent any discretionary spending lapse after September 30, 2025, but remains hopeful that Democrats will agree to this plan. As the deadline approaches, the situation remains uncertain, with significant implications for federal employees, programs, and the broader economy.
Further developments are expected as both parties continue to negotiate, with the potential for a government shutdown looming. The White House has not yet issued a formal response to Fox News Digital’s request for comment, leaving the situation open to further speculation and political maneuvering. The outcome of this dispute could have lasting effects on how the federal government operates, particularly in the event of a shutdown, with far-reaching consequences for federal agencies, employees, and the public.
Meanwhile, additional measures are being taken to prepare for the worst-case scenario, with the White House continuing to urge Congress to reach a compromise. The ongoing stalemate underscores the challenges of balancing fiscal responsibility with legislative priorities, and the potential for a shutdown highlights the broader political and financial risks associated with the current funding impasse.