The White House directed federal agencies to prepare plans for mass firings if US Congress fails to avert a government shutdown next week. The memo, issued by the Office of Management and Budget (OMB), instructed agencies to draft “reduction in force" plans for programmes whose funding will expire if lawmakers do not reach a deal before the 30 September deadline.

“We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary," the memo said. The note warned that permanent layoffs could occur in programmes and projects that lack alternative funding sources and are “not consistent with the President’s priorities."

The warning came a day after US President Donald Trump refused to meet with Democratic leaders, who are pressing for healthcare funding as part of negotiations. The US President said on social media, “I have decided that no meeting with their Congressional Leaders could possibly be productive. Their demands are unserious and ridiculous."

Last week, House Republicans- joined by one Democrat- passed a short-term measure to keep the government funded through November 20. Senate Democrats blocked the bill, instead advancing their own proposal to restore healthcare funding.

The standoff follows Donald Trump’s “One, Big Beautiful Bill" in July, which imposed sweeping cuts to Medicaid, the programme relied on by millions of low-income and disabled Americans.

If US Congress does not pass a budget or stopgap measure by October 1, the government will enter a shutdown, halting all non-essential discretionary functions. Donald Trump has already overseen significant reductions in the federal workforce through his Department of Government Efficiency (DOGE) initiative, which has cut thousands of jobs since he took office.

Source: News18