RIFs vs layoffs: Explaining Trump admin's latest move amid govt shutdown. What does it mean?

Office of Management and Budget (OMB) director Russ Vought announced on Friday that RIFs have begun

President Donald Trump’s administration has begun firing federal workers after the government shutdown earlier this month, Office of Management and Budget (OMB) director Russ Vought announced on Friday. He also mentioned RIFs, which stand for Reductions in Force.

Donald Trump walks on the South Lawn of the White House after arriving on Marine One in Washington, DC (Bloomberg)

“The RIFs have begun,” Vought posted on X, platform formerly known as Twitter. His statement, on the 10th day of the government shutdown, has caused chaos.

“Can confirm RIFs have begun and they are substantial. These are RIFs not furloughs," an OMB spokesperson told POLITICO.

The OMB further told CNN: “While thousands of federal employees have already been furloughed without pay, it is not common practice to issue permanent layoffs during shutdowns.”

A White House official told the publication that the RIFs are to be blamed on the Democratic Party.

“It will be substantial, and we regret that the Democrats have shut down the government and forced workers to be put in this position,” the official said.

RIFs vs layoffs

RIFs, governed by Title 5 of the US Code, allow agencies to eliminate positions during budget crises, going beyond temporary furloughs by terminating employees outright. Unlike shutdown furloughs, where 750,000 workers are unpaid but retained, RIFs result in permanent job loss, with affected staff eligible for severance and unemployment.

Meanwhile, Trump has ordered a freeze on more than $28 billion in infrastructure funding for New York, California, and Illinois, states that overwhelmingly voted Democratic and have been frequent critics of his administration.

While Republicans maintain control of both chambers of Congress, they still need at least seven Democratic votes in the Senate to pass a funding bill. Democrats, meanwhile, are refusing to move forward without an extension of health-insurance subsidies.

“Until Republicans get serious, they own this — every job lost, every family hurt, every service gutted is because of their decisions,” Senate Democratic Leader Chuck Schumer said in a statement.

Labor unions have already filed lawsuits to block the layoffs, arguing they violate federal law during a shutdown. A federal court hearing is scheduled for October 16. Under labor regulations, the government must give 60 days’ notice before any layoffs, though that window can be shortened to 30 days under certain conditions.

Inside federal agencies, the effects are already being felt. The Department of Health and Human Services (HHS) confirmed layoffs are underway, with roughly 41% of its 78,000 employees furloughed. Communications Director Andrew Nixon said the job cuts focus on those already sent home without pay.

At the Treasury Department, officials are preparing to eliminate about 1,300 positions, according to a filing from labor union leader Thomas Huddleston of the American Federation of Government Employees. Nearly half of the Internal Revenue Service’s 78,000 staff were furloughed earlier this week.

Layoffs have also begun at the Education Department, which Trump has repeatedly vowed to dismantle, and at the Commerce Department, which oversees weather forecasting and economic data. Other reports point to job losses at the EPA, Energy, Interior, and Housing and Urban Development departments.

The Department of Transportation and Federal Aviation Administration, however, remain unaffected for now, as per a Reuters source.

(With Reuters inputs)