OMB Orders RIF Plans Ahead of Likely Shutdown

The White House Office of Management and Budget has instructed federal agencies to prepare reduction-in-force (RIF) plans that could permanently eliminate positions if discretionary funding lapses at the Oct. 1 fiscal-year deadline, departing from the usual temporary furlough-and-rehire approach. The memo directs agencies to identify programs and activities not consistent with the president’s priorities and to submit RIF plans and employee notices even for roles that might otherwise be excepted. Officials and lawmakers interpret the move as an aggressive negotiating tactic tied to the administration’s effort to downsize the federal workforce; Democrats warned of legal challenges and potential rehiring if courts or Congress intervene. OMB also has not widely published the customary public contingency plans on its website, leaving agencies, workers, contractors and the public without clarity; some departments (including SSA and EPA) have posted plans locally but many have not. With the Senate having rejected short-term funding measures and Congress largely out of session until late September, a partial government shutdown now appears likely and could affect hundreds of thousands of federal employees and critical services.