With less than a week until the federal government runs out of funding, Republicans and Democrats remain at an impasse over a new spending agreement. Meanwhile, the Trump administration is signaling that a shutdown could become an opportunity to permanently shrink the federal workforce.
A leaked memo from the Office of Management and Budget (OMB) outlines how agencies should prepare for a shutdown. It advises federal departments to “use this opportunity” to identify positions in programs, projects, and activities “not consistent with the President’s priorities” that could be cut under a Reduction in Force (RIF). Once new appropriations are passed, OMB instructs agencies to retain only the “minimal number of employees necessary to carry out statutory functions.”
The plan builds on nine months of Trump administration efforts to reduce federal bureaucracy. The Office of the Director of National Intelligence has already announced a 40% workforce reduction, the State Department has planned a 15% cut, and the Department of Education is preparing to eliminate 1,400 positions.
Senate Majority Leader Chuck Schumer (D-N.Y.) blasted the memo, calling it “an attempt at intimidation” while reaffirming Democrats’ willingness to force a shutdown if their spending demands are not met.
At the center of the standoff are competing short-term funding resolutions. Republicans passed a clean Continuing Resolution in the House to extend funding through November 21, with added security for lawmakers. Democrats countered with their own CR that includes healthcare-related policy provisions costing as much as $1.4 trillion.
House Appropriations Chair Tom Cole (R-Okla.) said Democrats’ proposal amounted to a “ransom note,” warning that their demands were not serious negotiations but an attempt at extortion. “House Republicans acted and passed a clean resolution to keep the government open,” Cole said. “Democrats are demanding extraneous provisions and more than $1 trillion in new spending for just four weeks of government funding.”
President Donald Trump canceled a scheduled meeting with Democratic leaders on Tuesday, saying negotiations could not be productive under the current terms. Political markets now place the odds of a shutdown at 75%.
