Shutdown Fight Escalates as White House Orders RIF Notices

The White House Office of Management and Budget has instructed federal agencies to prepare reduction-in-force (RIF) plans and issue RIF notices for programs whose discretionary funding would lapse if Congress does not pass a funding bill by Sept. 30, directing agencies to target programs “not consistent with the President’s priorities.” The administration is framing the memo as both preparedness and a political lever, and critics say it amounts to planning for mass federal firings to maximize the pain of a shutdown. Senate Minority Leader Chuck Schumer is coordinating with progressive groups, including MoveOn and the Progressive Change Campaign Committee, to harden Democrats’ shutdown strategy amid criticism and potential primary pressure from the left. National-security officials say core operations (for example, defense and air traffic control) would largely continue, but many civilian staff could be furloughed, interrupting training, contract work and advance planning and eroding morale across defense, diplomacy and intelligence agencies. States and localities are already running contingency plans to protect payrolls, grants and services, while federal unions and workers report acute anxiety and call the planned firings unlawful. Investors are warned the market impact is typically short-term but could produce volatility and risks to specific sectors or contracts.