Federal Workers Face Mass Layoffs Amid Shutdown Threat

CNN reported on September 27, 2025, that federal employees are expressing anxiety over a potential U.S. government shutdown that could begin if Congress does not approve a funding bill by the October 1 deadline. Unlike previous shutdowns that involved temporary furloughs, the White House's Office of Management and Budget (OMB) has instructed federal agencies to prepare for permanent layoffs. This directive targets programs where funding will lapse and which are not aligned with the president's priorities.

keyt.com reported, The primary conflict involves congressional Democrats and Republicans being unable to agree on a short-term spending bill. Democrats are seeking to include an extension of Affordable Care Act subsidies and reverse Medicaid cuts, which Republicans have rejected. In response to the layoff directive, which Senate Minority Leader Chuck Schumer called "mafia-style blackmail," unions have urged leaders to negotiate to avoid a shutdown. If an agreement is not reached, hundreds of thousands of federal workers could be furloughed or laid off, and many government services would be suspended.