Trump administration tells agencies to prepare mass layoffs for shutdown
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The new: The Trump administration has directed federal agencies to prepare for mass layoffs of government workers if funding lapses on 1 October, media reported citing a memo from the Office of Management and Budget.
The memo from OMB, which has played a central role in Trump’s campaign to scale back government, reportedly told agencies to consider a “reduction in force” for programs whose funding will lapse and that are “not consistent with the President’s priorities.”
Unlike in previous shutdowns, the directive would eliminate positions rather than furlough workers temporarily.
Democratic leaders said they would not back down and dismissed the move as intimidation. The government is set to shut down unless lawmakers reach a deal before the new fiscal year begins.
The context: The federal government is on the brink of its 15th partial shutdown since 1981, after lawmakers failed to agree on a plan for discretionary funding, which covers about one-quarter of the USD7 trillion budget, Reuters noted.
The Republican-controlled House passed a stopgap bill last week to fund the government through 21 November, but Senate Democrats rejected it, demanding that it reverse healthcare cuts and extend Obamacare subsidies. Democrats said around four million people could lose coverage, and 20 million would face higher costs if the subsidies expire.
The Congressional Budget Office estimates 10 million more Americans would become uninsured over the next decade under the current law.
In March, some Senate Democrats supported a temporary funding bill to avoid giving the administration power over shutdown spending. But after continued cuts and the expiry of healthcare provisions, the Democrats appear to be shifting tactics.
With government funding set to expire on 1 October, Republican House Speaker Mike Johnson cancelled the last two days the House was scheduled to be in session before the end of the fiscal year. Trump later withdrew from a planned meeting with Democratic leaders to discuss a funding deal.
In response, House Democratic Leader Hakeem Jeffries said Republicans are “publicly” owning the shutdown through their “irresponsible actions.”
The sources: Bloomberg, The Associated Press, The New York Times
