Federal businesses ordered to organize employees cuts forward of potential shutdown

The White House Office of Management and Budget (OMB) is telling federal agencies to draw up reduction-in-force (RIF) plans ahead of a possible government shutdown on Oct. 1, according to an internal memo obtained by Fox News. 

The guidance says agencies must consider issuing RIF notices to employees working on programs that are not legally required to continue if funding lapses.

“With respect to those Federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out,” the memo states.

Under the guidance, RIF notices would be issued on top of furlough notices and should go to all employees tied to the affected programs.

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An internal memo from the White House Office of Management and Budget obtained by Fox News warns agencies of reduction in force measures if a government shutdown cannot be avoided by Oct. 1. (Kevin Carter/Getty Images)

Agencies would later revise those plans once Congress approves fiscal year 2026 appropriations, keeping only the staff needed for core statutory functions.

The memo notes that while Congress has usually passed short-term funding bills on a bipartisan basis, they believe this year is different. 

The same memo accuses Democrats of breaking that trend and pushing for “insane demands, including $1 trillion in new spending,” which it says could force a shutdown.

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Director of the Office of Management and Budget Russell Vought speaks to reporters outside the West Wing of the White House. (Andrew Caballero-Reynolds/Getty Images)

Last week, the House passed H.R. 5371, described as a clean continuing resolution (CR) that would extend current funding through Nov. 21. The administration backs the bill, but the memo says Democrats are blocking it in the Senate.

“We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary,” the memo says.

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“The President supports enactment of a clean CR to ensure no discretionary spending lapse after Sept. 30, 2025, and OMB hopes the Democrats will agree.”

The White House did not immediately respond to Fox News Digital’s request for comment.