Federal Workers, Agencies Brace for Looming Government Shutdown

It’s down to the wire to prevent a government shutdown. Government funding is set to expire at the stroke of midnight on October 1, and with little sign of progress in negotiations between the White House and Congressional Republicans and Democrats, agencies and federal workers are in full preparation mode. 

If no deal is reached, wide swaths of the federal government will shut down while essential services will continue. 

Layoffs May Loom

Shutdowns are not new for federal employees, who have previously endured furloughs and later received back pay. But this time, the Office of Management and Budget (OMB) directed agencies to prepare for potential layoffs along with the furloughs, making for a more uncertain scenario.

President Trump told NBC News that if the government shuts down “we are going to cut a lot of the people that ... we’re able to cut on a permanent basis” although he said that he’d ″rather not do that.”

Meanwhile, the Office of Personnel Management (OPM) published updated guidance for shutdown furloughs. The guidance says that implementations of reductions in force (RIFs) can continue during a shutdown. However, the administration noted that agencies can tweak layoff plans when the government reopens and funding is restored. 

“Once fiscal year 2026 appropriations are enacted, agencies may consider revising their RIFs as needed to retain the minimal number of employees necessary to carry out statutory functions,” said OPM. 

Regardless, federal employee groups are speaking out. 

“Federal employees are not bargaining chips. They are veterans, caregivers, law enforcement officers, and neighbors who serve their country and fellow Americans every day,” said the American Federation of Government Employees (AFGE) in a statement. “They deserve stability and respect, not pink slips and political games.”

Paychecks on Hold

And no matter what happens, paychecks will not go out until the shutdown is resolved. Since we’re near the end of a pay period, the first missed check for civilian employees is October 24, while it’s October 15 for the military. 

“I’ll go home today and take stock of my budget and pantry and make sure my family can ride out the next month or more, of whatever is coming,” a Department of Interior employee told CNN. “And then tomorrow, I’ll get up and come to work and do my best for America, until they tell me I can’t come to work anymore.”

Agency Shutdown Plans

We’re also learning more about individual agency plans.

The Internal Revenue Service (IRS) says its entire workforce will report to work for five business days following a shutdown, as it’s tapping into Inflation Reduction Act funds to keep its workforce going. It did not specify what will happen if the shutdown goes beyond five business days. 

The Department of Defense says nearly half of its civilian employees will be furloughed in the event of a shutdown. 

The Department of Health and Human Services (HHS) plans to furlough about 41 percent of its workforce. 

OMB also said that agency plans will be available only on the agency’s individual website. In the past, OMB has published plans from all agencies on its own website.