White House orders agencies to plan for permanent layoffs, not furloughs, in looming shutdown, citing congressional deadlock.

The White House has directed federal agencies to prepare for mass layoffs, rather than temporary furloughs, in the event of a government shutdown beginning September 30, 2025, marking a significant shift from past shutdowns. The Office of Management and Budget’s memo, issued September 24, instructs agencies to consider eliminating positions not funded or aligned with the President’s priorities, a move that could result in permanent job losses. The directive comes amid a congressional impasse, with Democrats refusing to back a Republican funding bill unless it includes extensions of health insurance subsidies and reversals of Medicaid cuts. Democratic leaders have dismissed the threat as political intimidation, while the White House emphasizes readiness amid the fiscal standoff.