Originally Published
September 30, 2025
Last Updated
October 1, 2025

Government Spirals Toward Shutdown as Trump Promises Mass Federal Layoffs

With Congress failing to pass a short-term funding bill, hundreds of thousands of federal workers face furloughs... and Trump is threatening layoffs that go beyond any shutdown in history

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Government Spirals Toward Shutdown as Trump Promises Mass Federal Layoffs

With Congress failing to pass a short-term funding bill, hundreds of thousands of federal workers face furloughs, and Trump is threatening layoffs that go beyond any shutdown in history.

Updated: September 30, 2025
~550,000Furloughs projected
~1.57MWorking without pay
Oct 1, 2025Shutdown start date

Washington at a Standstill

The U.S. government is barreling toward a shutdown starting October 1, 2025, after the Senate rejected a stopgap funding bill Tuesday night. The measure, which would have kept agencies running through November 21, failed to reach the 60-vote threshold in a 55–45 tally.

Republicans unanimously backed the House-passed bill, but Democrats blocked it, pointing to disputes over health care premium increases and limits on Trump’s authority to redirect federal spending.

With no agreement in sight, agencies will begin shutdown procedures Wednesday morning, the first since 2019.

Furloughs and Pay Delays

Shutdowns are not new, but this one comes with a twist.

Traditionally, shutdowns mean:

  • Furloughs: Hundreds of thousands of “nonessential” federal employees are sent home without pay.
  • Essential staff without pay: Workers in roles like security, air travel, and emergency response must report for duty but won’t see paychecks until funding is restored.
  • Service slowdowns: Expect delays in Social Security response times, tax processing, and passport applications.

This time, about 550,000 employees are expected to be furloughed. Another 1.57 million will keep working but without pay until the government reopens.

Trump Ties Shutdown to Mass Layoffs

“The Democrats want to shut it down, so when you shut it down, you have to do layoffs,” Trump said Tuesday. “So we’d be laying off a lot of people that are going to be very affected.”

President Trump escalated the standoff by linking the shutdown to possible reduction-in-force notices... permanent layoffs of federal workers. Experts note that historically, shutdowns and layoffs have never been connected. Federal employees normally return to their jobs once funding resumes, with back pay guaranteed by law.

Still, the Office of Management and Budget directed agencies to prepare layoff plans for employees funded through annual appropriations and not tied to Trump’s policy priorities. This move has triggered lawsuits from the American Federation of Government Employees, who argue Trump lacks the legal authority to issue RIFs tied to a funding lapse.

How Employees Are Affected

  • Furloughed workers: Sent home, barred from working, and waiting for reopening.
  • Working without pay: More than 1.5 million employees must keep reporting for duty, relying on guaranteed back pay later.
  • Legal uncertainty: Agencies are preparing layoff memos, but most RIF notices require 60 days’ warning, meaning actual job losses may not take effect before the government reopens.

Federal workers received notices Tuesday evening clarifying whether they would be furloughed. By Wednesday morning, all employees are expected to report in and complete “shutdown closeout” tasks before leaving indefinitely if they are furloughed.

Political Stalemate

The two sides remain entrenched:

  • Democrats: Demanding relief on Affordable Care Act premium hikes and curbs on Trump’s impoundment authority.
  • Republicans: Arguing the dispute is a manufactured crisis and refusing to negotiate policy conditions tied to basic funding.

Sen. John Thune, Senate Majority Leader, said Republicans would not be “held hostage.” Democrats countered that Trump is using the shutdown as cover to advance mass layoffs he intended to pursue regardless.

Legal Challenges and Next Steps

AFGE and Democracy Forward have filed lawsuits calling Trump’s layoff plan “illegal, immoral, and unconscionable.” Meanwhile, the Office of Personnel Management has told agencies to prepare formal “decisional memoranda” justifying layoffs... a move that could set up a protracted court battle.

Congress is expected to hold additional votes on Wednesday, but with Yom Kippur observances and no clear compromise, the shutdown could stretch into the weekend or longer.

The Bigger Picture

This shutdown is different, not because of the funding lapse itself, which history shows causes temporary disruption but limited long-term economic damage but because of the threat of permanent federal workforce cuts.

For federal workers, it’s not just a matter of waiting for back pay anymore. It’s a looming question: Will my job even exist when this shutdown ends?