The United States government has officially entered a shutdown, raising concerns about mass federal layoffs and significant cuts to social safety-net programs. In the final hours before funding expired, President Donald Trump indicated that the administration might leverage the shutdown to implement “irreversible” reductions in healthcare and social benefits. “We can do things during the shutdown that are irreversible, that are bad for them,” he stated on Tuesday, referring to Democrats. “Like cutting vast numbers of people out (…) cutting programs that they like.”
The potential impact of the shutdown is severe. The nonpartisan Congressional Budget Office (CBO) estimates that up to 750,000 federal employees could be furloughed each day the shutdown continues, leading to an estimated daily cost of approximately $400 million in compensation. In an unprecedented move, federal agencies have been directed to prepare for “reduction in force” (RIF) plans. This could mean that temporary furloughs might turn into permanent layoffs, particularly for positions tied to programs facing funding losses, and which do not align with Trump administration policies.
Union leaders have responded strongly to these threats. The American Federation of Government Employees and AFSCME have filed a lawsuit in federal court, asserting that the administration’s actions violate the Antideficiency Act. This law prohibits expenditure beyond available appropriations and mandates that furloughed workers receive retroactive pay. The suit, which names OMB Director Russell Vought and OPM Director Scott Kupor, argues that their decisions are unlawful.
“The threat of massive layoffs was repeated and reinforced yesterday by the White House press secretary, who, when asked whether there will be mass layoffs of federal employees, answered, ‘There will be if Democrats don’t keep the government open,’” the lawsuit claims. “These actions are contrary to law and arbitrary and capricious, and the cynical use of federal employees as a pawn in Congressional deliberations should be declared unlawful and enjoined by this Court.”
Democrats have condemned the administration’s strategy. Senate Minority Leader Chuck Schumer accused Trump of using Americans as “political pawns.” Similarly, Senator Chris Van Hollen characterized the administration’s threats as akin to “mafia-style blackmail,” while Senator Mark Warner stated that Trump is treating people’s “lives and livelihoods” as “bargaining chips.”
Despite the backlash, some Republicans are viewing the shutdown as an opportunity. House Speaker Mike Johnson remarked on Fox News that the disruption could facilitate a reduction in the size and scope of government, a long-held goal for many in his party. “In a way, Chuck Schumer has now handed the keys to the kingdom to the executive branch under President Trump,” he said.
As the government shutdown continues, the implications for federal employees and the broader social safety net remain uncertain. The ongoing situation highlights the deep divisions in Congress and raises critical questions about the future of essential programs.