OMB Director Russell Vought has warned that as many as 300,000 federal employees could be permanently dismissed if congressional Democrats force a government shutdown, signaling a sharp departure from the traditional use of furloughs.
Vought made the remarks during an appearance on Fox Business, where he said the administration would use the budget impasse as an “opportunity” to shrink the federal workforce and advance its agenda.
Under the Trump administration, agencies have been instructed to prepare Reduction-in-Force (RIF) plans to eliminate positions in programs that would lose discretionary funding in a shutdown.
Labor unions have already responded by filing lawsuits against OMB and the Office of Personnel Management (OPM), alleging that the threat of mass firings in the absence of appropriated funding would violate federal law, including the Antideficiency Act, which restricts federal spending when Congress has not authorized funds.
Historically, during government shutdowns, non-essential federal employees are furloughed (temporarily suspended from work), rather than fired outright. Essential workers continue to operate—often without immediate pay—but receive compensation once funding is restored.
The shift proposed by Vought’s statements marks a more aggressive posture. Critics argue this could politicize the federal workforce, undercuting protections that have existed for decades.
As of now, it remains to be seen whether these threats will be carried out legally or challenged in court.
