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01/05/2026

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01/05/2026
LAWIN.news

White House signals layoffs as government shutdown looms

by LAWIN.news September 26, 2025
written by LAWIN.news September 26, 2025
Photo credit: The Economic Times
72

The Trump administration warned federal agencies to prepare for layoffs if Congress does not pass a government funding bill before the deadline, raising the risk of a government shutdown.

Without approved funding, many non-essential federal employees could face furloughs, disrupting services across the country.

Agencies were instructed to identify essential staff who would remain on duty and non-essential workers who may be temporarily laid off.

While national security and public safety functions would continue, many other government operations could be suspended or delayed, affecting citizens and businesses.

Federal employees face uncertainty and financial strain during furloughs, even though they are typically reimbursed later. Federal contractors often receive no back pay, adding to concerns over the impact on this workforce.

The administration’s alert aims to ensure agencies are ready if a shutdown occurs but does not signal an expectation that one is inevitable. The focus remains on Congress to reach a funding agreement and prevent disruptions to government services and the economy.

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