Power Grab/Fire anyone who can stop him
The White House begins laying off about 4,200 federal employees ten days into a shutdown; a judge blocks it and the shutdown law bars it
OMB Director Russell Vought posted on October 10, 2025 that “the RIFs have begun.” The notices were rescinded and separated employees reinstated.
What happened
On October 10, 2025, ten days into a government shutdown, OMB Director Russell Vought posted that “the RIFs have begun.” The administration told a federal court that about 4,200 employees at agencies including HHS, Treasury, Education, HUD, Commerce, Energy and DHS were receiving layoff notices. HHS alone had roughly 1,100 to 1,200.
Judge Susan Illston issued a temporary restraining order on October 15 and a preliminary injunction on October 28, blocking the shutdown layoffs and pausing notices already sent. OMB had told agencies before the shutdown to prepare RIFs in programs not consistent with the president’s priorities. OPM had rewritten its guidance to treat layoffs as work that could continue during a lapse.
The law that ended the 43-day shutdown in November barred agencies from carrying out the layoffs. The notices were rescinded and separated employees reinstated. In a settlement announced September 25, 2026, the administration agreed to withdraw the guidance treating layoffs as shutdown-exempt.
Who benefited
The White House used the threat of permanent layoffs as leverage against Democrats in the funding standoff. OMB tested whether a lapse in appropriations could shrink agencies Congress had funded. Trump said the numbers would be large and blamed Democrats.
Who wanted something
Vought announced the layoffs and his office directed agencies to plan them. Trump posted a video depicting Vought as the Grim Reaper. The shutdown offered them a chance to cut programs they opposed without passing legislation.
Who lost out
About 4,200 employees received termination notices while furloughed or working without pay. The public that relies on IRS technology staff and HUD housing programs also lost out, as did the Community Development Financial Institutions Fund, which was to be abolished entirely. Sen. Collins called the move unnecessary.
Why it matters
No statute requires layoffs in a shutdown, and none had occurred in earlier ones. Treating a funding lapse as license to fire people permanently would make every budget deadline a threat to the civil service. A court, Congress and finally a settlement rejected that reading.
Sources U.S. District Court, N.D. Cal. (via Justia) (primary)NPRGovernment Executive