The US government shutdown, now stretching past its tenth day, has entered a new and more disruptive phase. On Friday, the Trump administration began executing mass layoffs of federal employees, a step that goes beyond the furloughs typical of past shutdowns. The move, driven by White House budget director Russell Vought, is intended to pressure Democrats in US Congress to agree to a Republican short-term spending plan. But it has already sparked legal battles and inflamed partisan tensions, the Wall Street Journal reported.
Who is losing their jobs?
According to administration filings, about 4,000 federal workers will be cut in the first wave. The US Treasury Department is expected to lose more than 1,400 employees, while US Health and Human Services will shed up to 1,200. Education and Housing and Urban Development are each set to lose more than 400 staff members. These layoffs come on top of the roughly 100,000 workers who have already fallen off the government payroll since the shutdown began on October 1. For many, this week will mark the first missed pay-cheque.
Legal challenges already underway
Unions representing government employees have filed motions in federal court to block the layoffs. A judge in San Francisco ordered the administration to provide details of its reduction-in-force plans by Friday evening. The lawsuits argue that permanent job cuts during a shutdown are unlawful, since past shutdowns have only involved temporary furloughs with back pay guaranteed when funding resumes. The case could determine whether the administration can carry out broader layoffs as the standoff drags on.
Russell Vought’s hardline role
Vought, who has long advocated shrinking the federal workforce, is central to the strategy. As a key architect of the conservative Project 2025 blueprint, he has previously argued that federal employees should be put “in trauma” to weaken what he sees as an entrenched bureaucracy. In practice, he has gone further than rhetoric: even before the shutdown, he ordered agencies to prepare layoff plans. He also froze or cancelled high-profile projects in Democratic states, including $18 billion in transit funding for New York and New Jersey. His aggressive tactics underline the administration’s willingness to use the shutdown as a tool for restructuring government.
Democrats push back
Democrats accuse the administration of weaponizing the shutdown for partisan ends. They argue that mass firings have never been part of past shutdowns and are meant to undermine federal institutions rather than resolve the budget impasse. Senate Appropriations Committee Democrat Patty Murray denounced the move, saying, “We can’t be intimidated by these crooks.” Democrats continue to demand talks on restoring healthcare funding and other social programs, while Republicans insist no negotiations will occur until the GOP’s stopgap budget is passed.
What comes next
The political deadlock shows little sign of breaking. President Trump has promised that the military will continue to be paid, but has suggested that not all federal workers will be guaranteed back pay. If layoffs proceed as planned, tens of thousands more employees could be targeted in the coming weeks. Beyond the legal questions, the uncertainty is sowing anxiety among workers who depend on federal pay-cheques and communities reliant on federal services.
Why this matters
This round of layoffs represents a shift from the shutdown playbooks of previous administrations, signalling a harder-edged approach that could have long-term effects on the size and scope of the federal government. For Democrats, it is a battle over protecting the workforce and preserving funding for health and infrastructure. For Republicans, it is a test of whether aggressive tactics can force policy concessions. For federal workers caught in the middle, the outcome may mean not just missed wages, but permanent job losses.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!