The White House has issued a warning of potential mass federal layoffs as a government shutdown looms on October 1, with agencies instructed to prepare for permanent job cuts targeting employees in programs deemed inconsistent with presidential priorities.

OMB Director Russ Vought directed federal agencies to draft Reduction-in-Force (RIF) notices for “thousands” of workers if funding lapses, citing programs lacking legal coverage under H.R. 1 appropriations or failing to align with the administration’s agenda. The move marks a departure from past shutdowns, where furloughs were typically temporary, as this plan threatens permanent terminations.

Agencies must submit RIF plans for approval immediately, with directives to issue notices even to staff historically exempt from funding gaps. Key services like Social Security, Medicare, and military operations will remain operational, while non-essential programs face elimination.

The administration blamed Democrats for “insane demands” including $1 trillion in new spending, as negotiations over a short-term funding bill stalled. Senate Republicans failed to secure enough votes for a House-passed measure, leaving the shutdown deadline on September 30 unresolved.

Trump’s office has framed the threat as leverage against congressional negotiations, with officials emphasizing that programs without mandatory appropriations will face cuts. The standoff intensifies as federal workers who resigned earlier this year exit payroll, raising stakes for a potential mass purge of government staff.