Unions Sue to Block Shutdown RIF Plans

A failure to pass a continuing resolution triggered a federal government shutdown, and OMB instructed agencies to prepare Reduction in Force (RIF) notices while OPM issued guidance classifying RIF administration as an excepted activity so agencies may carry out RIFs during the lapse with pay deferred until funding resumes. Major unions AFGE and AFSCME have sued OMB and OPM, arguing the administration’s move— which they say seeks to use the shutdown to carry out permanent RIFs—violates the Antideficiency Act and seeking to block RIF actions. OMB Director Russell Vought has signaled widespread layoffs are imminent, and the U.S. Patent and Trademark Office has slated roughly 1% of its staff for RIFs. Efforts to litigate or unwind RIFs are being hampered by the shutdown itself, as Justice Department attorneys are furloughed and some court proceedings have been paused or delayed. The administration has also frozen or canceled funding for select infrastructure and green-energy projects in Democratic-led states, a step framed as leverage in shutdown negotiations. Unions warn hundreds of thousands of federal workers could work without pay, miss paychecks, or face termination if the lapse exceeds about 30 days, even as most mandatory payments continue and millions of civilian employees face potential furloughs.