U.S. Enters 10th Day of Shutdown… White House Begins Federal Employee Layoff Procedures

Source
Korea Economic Daily

Summary

  • The White House has begun federal employee layoff procedures due to a U.S. federal government shutdown, the report said.
  • The repeated failure to pass a temporary budget bill has also led to disruptions in payroll for federal employees, the report said.
  • The prolonged shutdown is increasing political and administrative uncertainty in the United States, the report said.

Trump: "Will announce large-scale layoffs within days"

Political conflicts over 'Obamacare' and others paralyze the administration

As some functions of the U.S. federal government remain suspended in a "shutdown" (temporary stop of operations), now entering its tenth day on the 10th (local time), the White House has begun procedures to lay off federal employees.

With Republicans and Democrats deadlocked over the passage of a temporary budget bill that caused the shutdown, analysts say President Donald Trump is using "federal employee layoffs" as leverage to put pressure on the Democrats.

Russell Vought, director of the White House Office of Management and Budget (OMB), said on his X (formerly Twitter) account that "a Reduction in Force (RIF) has begun."

The White House had previously indicated plans to implement personnel reductions focused on agencies that are not among the administration's policy priorities even before the shutdown. As the shutdown showed signs of prolonged duration, it has actually carried out personnel cuts. The specific scale, however, was not disclosed.

President Trump told reporters at the White House, "We will announce the numbers (of layoffs) within a few days, but it will be quite large," and added, "It's all the Democrats' fault."

Federal employees who have already received layoff notices have been reported in increasing numbers. A Department of Health and Human Services (HHS) spokesperson told Reuters that "as a direct result of the Democrat-led government shutdown, staff in several HHS offices have received RIF notices."

The spokesperson explained that "staff receiving RIF notices were classified as nonessential personnel within each office," and added, "HHS continues to close wasteful or duplicative organizations, including offices that run counter to the Trump administration's goal of 'Making America Healthy Again.'"

The Department of Education also said it has designated some employees as layoff targets.

In response, Senate Democratic leader Chuck Schumer wrote on X, "Russell Vought just tweeted that thousands of Americans have been fired," criticizing, "Trump and Vought didn't have to do this. They did it because they wanted to."

He added, "They have coldly chosen to fire employees who protect our country, inspect our food, and respond to disasters," calling it "deliberate chaos."

Criticism also came from within the Republican Party. Senate Appropriations Committee Chair Susan Collins (Maine), a moderate Republican, said in a statement that she "strongly opposes attempts to permanently fire federal employees who are currently on temporary furlough," Politico reported.

In Congress, disagreements between the two parties over extending subsidies for Obamacare have repeatedly blocked passage of the temporary budget bill. The temporary budget bill is a short-term funding measure to keep the government operating before passing the regular budget for the 2026 fiscal year, which began on the 1st of this month.

As the shutdown drags on, payments to federal employees are also being disrupted.

House Speaker Mike Johnson warned at a press conference that "the Democrats are standing firm and are not concerned about unpaid pay for service members and other federal employees," and cautioned, "As a result, 1.3 million active-duty service members will not receive pay on October 15."

Yoo Ji-hee, Hankyung.com reporter keephee@hankyung.com

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Korea Economic Daily

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