Labor & Employment Law Daily Wrap Up, ECONOMIC NEWS—Possibility of RIFs casts shadow over potential shutdown, (Sep 29, 2025)

By Brandi O. Brown, J.D.

OMB has instructed agencies to prepare for permanent RIFs in the event of a government shutdown.

AFL-CIO President Liz Shuler has issued a statement in light of news that the Office of Management and Budget has told government agencies to prepare for RIFs in the event of a shutdown.

“America’s federal workers—the hardworking people across the country who keep our essential government services running—have already suffered immensely from the chaos and destruction inflicted by this administration’s Project 2025/DOGE agenda. They are not pawns for the president’s political games.

This administration must fix the mounting health care crisis and find a funding solution now to avoid a costly government shutdown. We urge the administration to get to work. Time is running out.”

The email. The RIF statements were found in an email that was sent by OMB to various agencies. It states: “With respect to those Federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out.” It instructs the agencies to “consider Reduction in Force (RIF) notices for all employees in programs, projects, or activities (PPAs) that satisfy all three of the following conditions: (1) discretionary funding lapses on October 1, 2025; (2) another source of funding, such as H.R. 1 (Public Law 119-21) is not currently available; and (3) the PPA is not consistent with the President’s priorities.”

It adds that “RIF notices will be in addition to any furlough notices provided due to the lapse in appropriation. RIF notices should be issued to all employees working on the relevant PPA, regardless of whether the employee is excepted or furloughed during the lapse in appropriations.”

“Once fiscal year 2026 appropriations are enacted,” it continues, “agencies should revise their RIFs as needed to retain the minimal number of employees necessary to carry out statutory functions. Any proposed RIF plan must be submitted to OMB.”

OPM’s “simultaneous reduction in force in process.” OPM has also issued “Special Instructions for Agencies Affected by a Possible Lapse in Appropriations Starting on October 1, 2025.” In a section entitled “Simultaneous Reductions in Force in Process,” it notes that “[s]ome employees affected by a lapse in appropriations may have also received a notice of reduction in force (RIF) with a future effective date. In connection with a possible October 1, 2025, lapse in appropriations, OMB has directed agencies to consider issuing RIF notices to all employees in programs, projects, or activities (PPAs) that satisfy” the described conditions. It provides instructions for how to proceed in those circumstances.

Schumer responds. Senate Democratic Leader Chuck Schumer (D-NY) claims the memo is “an attempt at intimidation.” He adds: “Donald Trump has been firing federal workers since day one—not to govern, but to scare. This is nothing new and has nothing to do with funding the government. These unnecessary firings will either be overturned in court or the administration will end up hiring the workers back, just like they did as recently as today.”

News: EconomicNews WhiteHouseNews AgencyNews PublicEmployees Layoffs GCNNews