budget office

WASHINGTON — President Trump is making this government shutdown unlike any the country has ever seen, enabling his budget office a rare authority to pick winners and losers — who gets paid or fired — in an unprecedented restructuring across the federal workforce.

As the shutdown enters its third week, the Office and Management and Budget said Tuesday it’s preparing to “batten down the hatches” with more reductions in force to come. The president calls budget chief Russ Vought the “grim reaper” who’s seized on the opportunity to fund Trump’s priorities, paying the military while slashing employees in health, education, the sciences and other areas with actions that have been criticized as illegal and are facing court challenges.

“Pay the troops, pay law enforcement, continue the RIFs, and wait,” OMB said in a social media post.

With Congress at a standstill — the Republican-led House refusing to return to session and the Senate stuck in a loop of failed votes to reopen government as Democrats demand health care funds — the White House’s budget office quickly filled the void.

From Project 2025 to the White House

Vought, a chief architect of the conservative Project 2025 policy book, is reshaping the size and scope of federal government in ways similar to those envisioned in the blueprint. It is exactly what certain lawmakers, particularly Democrats, feared if Congress failed to fund the government.

Trump’s priorities — supporting the military and pursuing his mass deportation agenda — have been kept largely uninterrupted, despite the closures. But employees in health, education, the sciences and other federal departments are among those being laid off. As many as 750,000 workers are being furloughed.

“Donald Trump and Russ Vought and all of their cronies are using this moment to terrorize these patriots,” said Sen. Chris Van Hollen, D-Md., standing with federal workers Tuesday outside the White House budget office.

Van Hollen said it’s “a big fat lie” when Trump and his budget director say that the shutdown is making them fire federal workers. “It is also illegal and we will see them in court,” Van Hollen said.

Shutdown grinds into a third week

Now on its 14th day, the federal closure is quickly becoming among the longest government shutdowns. Congress failed to meet the Oct. 1 deadline to pass the annual appropriations bills needed to fund the government as the Democrats demanded a deal to preserve expiring health care funds that provide subsidies for people to purchase insurance through the Affordable Care Act.

House Speaker Mike Johnson on Tuesday said he has nothing to negotiate with the Democrats until they vote to reopen the government.

The Republican speaker welcomed OMB’s latest actions to pay some workers and fire others.

“They have every right to move the funds around,” Johnson said at a press conference at the Capitol. If the Democrats want to challenge the Trump administration in court, Johnson said, “bring it.”

Typically, federal workers are furloughed during a lapse in funding, traditionally with back pay once government funding is restored. But Vought’s budget office announced late last week the reductions in forces had begun. More than 4,000 workers received layoff notices over the weekend.

Military pay, deportations on track

At the same time, Trump instructed the military to find money to ensure service personnel wouldn’t miss paychecks this week. The Pentagon said over the weekend it was able to tap $8 billion in unused research and development funds to make payroll.

On Tuesday, Homeland Security Secretary Kristi Noem said her agency was relying on Trump’s big tax cuts law for funding to make sure members of the Coast Guard, which falls under the department, are also paid.

“We at DHS worked out an innovative solution to make sure that didn’t happen,” Noem said in a statement. Thanks to “the One Big Beautiful Bill,” she said, “the brave men and women of the US Coast Guard will not miss a paycheck this week.”

In past shutdowns, the Office of Management and Budget has overseen agency plans during the lapse in federal fundings, ensuring which workers are essential and remain on the job. Vought, however, has taken his role further by speaking openly about his plans to go after the federal workforce.

As agencies started making their shutdown plans, Vought’s OMB encouraged department heads to consider reductions in force, an unheard of action. The budget office’s general counsel, Mark Paoletta suggested in a draft memo that the workforce may not be automatically eligible for back pay once government reopens.

‘Grim reaper’ replaces Elon Musk’s chainsaw

Trump posted an AI-generated video last week that portrayed Vought dressed with cloak and dagger, against the backdrop of the classic rock staple “(Don’t Fear) The Reaper.”

“Every authoritarian leader has had his grim reaper. Russell Vought is Donald Trump’s,” said Rep. Steny Hoyer, the senior Democrat from Maryland.

Hoyer compared the budget chief to billionaire Elon Musk wielding a chainsaw earlier this year as part of the Department of Government Efficiency’s slashing of the workforce “Vought swings his scythe through the federal government as thoughtlessly,” he said.

In many ways, the “Big, Beautiful Bill, Act” as the law is commonly called, gives the White House a vast new allotment of federal funding for its priority projects, separate from the regular appropriations process in Congress.

The package unleashed some $175 billion for the Pentagon, including for the Golden Dome missile shield and other priority projects, and another $175 million to Homeland Security largely for Trump’s mass deportation agenda. It also included extra funds for Vought’s work at OMB.

Trump’s big bill provides billions

Certain funds from the “big bill” are available to be used during the shutdown, according to the nonpartisan Congressional Budget Office.

“The Administration also could decide to use mandatory funding provided in the 2025 reconciliation act or other sources of mandatory funding to continue activities financed by those direct appropriations at various agencies,” according to CBO.

The CBO cited the Department of Defense, the Department of the Treasury, the Department of Homeland Security, and the Office of Management and Budget as among those that received eligible funds under the law..

Mascaro writes for the Associated Press. AP writers Kevin Freking, Stephen Groves and Mary Clare Jalonick contributed to this report.

WASHINGTON — The White House is telling agencies to prepare large-scale firings of federal workers if the government shuts down next week.

In a memo released Wednesday night, the Office of Management and Budget said agencies should consider a reduction in force for federal programs whose funding would lapse next week, are not otherwise funded and are “not consistent with the President’s priorities.” That would be a much more aggressive step than in previous shutdowns, when federal workers not deemed essential were furloughed but returned to their jobs once Congress approved government spending.

A reduction in force would not only lay off employees but eliminate their positions, which would trigger yet another massive upheaval in a federal workforce that has already faced major rounds of cuts this year due to efforts from the White House’s cost-cutting team the Department of Government Efficiency, and elsewhere in the Trump administration.

Once any potential government shutdown ends, agencies are asked to revise their reduction in force plans “as needed to retain the minimal number of employees necessary to carry out statutory functions,” according to the memo, which was first reported by Politico.

This move from OMB significantly increases the consequences of a potential government shutdown next week and escalates pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. The two leaders have kept nearly all of their Democratic lawmakers united against a clean funding bill pushed by President Trump and congressional Republicans that would keep the federal government operating for seven more weeks, demanding immediate improvements to healthcare in exchange for their votes.

In statements issued shortly after the memo was released, the two Democrats showed no signs of budging.

“We will not be intimidated by your threat to engage in mass firings,” Jeffries wrote in a post on X. “Get lost.”

Jeffries called Russ Vought, the head of OMB, a “malignant political hack.”

Schumer said in a statement that the OMB memo is an “attempt at intimidation” and predicted the “unnecessary firings will either be overturned in court or the administration will end up hiring the workers back.”

OMB noted that it held its first planning call with other federal agencies earlier this week to plan for a shutdown. The budget office plays point in managing federal government shutdowns, particularly planning for them ahead of time. Past budget offices have also posted shutdown contingency plans — which would outline which agency workers would stay on the job during a government shutdown and which would be furloughed — on its website, but this one has not.

The memo noted that congressional Democrats are refusing to support a clean government funding bill “due to their partisan demands,” which include an extension of enhanced health insurance subsidies set to expire at the end of the year, plus a reversal of Medicaid cuts that were included in Republicans’ big tax and spending cuts law.

“As such, it has never been more important for the Administration to be prepared for a shutdown if the Democrats choose to pursue one,” the memo reads, which also notes that the GOP’s signature law, a major tax and border spending package, gives “ample resources to ensure that many core Trump administration priorities will continue uninterrupted.”

OMB noted that it had asked all agencies to submit their plans in case of a government shutdown by Aug. 1.

“OMB has received many, but not all, of your submissions,” it added. “Please send us your updated lapse plans ASAP.”

Kim writes for the Associated Press.

WASHINGTON —  President Trump’s budget office on Wednesday rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

The Monday evening memo from the White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington and left the White House scrambling to explain what would and wouldn’t be subject to a pause in funding.

The White House confirmed that OMB pulled the memo Wednesday in a two sentence notice sent to agencies and departments, but said that Trump’s underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change, remained in place.

Administration officials said the notice to halt loans and grants was necessary to conduct a review to ensure that spending complies with Trump’s recent blitz of executive orders. Agencies had been directed to answer a series of yes or no questions on each federal program by Feb. 7. The questions included “does this program promote gender ideology?” and “does this program promote or support in any way abortion?”

Still, the vaguely worded memo, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.

The freeze was scheduled to go into effect at 5 p.m. Tuesday, but was stayed by a federal judge until at least Monday after an emergency hearing requested by nonprofit groups that receive federal grants. An additional lawsuit by Democratic state attorneys general was also pending.

“The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments,” White House press secretary Karoline Leavitt said, blaming the confusion on the courts and news outlets, not the administration. “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending.”

Trump administration officials said programs that provide direct assistance to Americans, including Medicare, Social Security, student loans and food stamps, would not be affected. But they sometimes struggled to provide a clear picture.

Leavitt initially would not say whether Medicaid was exempted from the freeze, but the administration later clarified that it was.

Although Trump had promised to turn Washington upside down if elected to a second term, the effects of his effort to pause funding were being felt far from the nation’s capital. Organizations like Meals on Wheels, which receives federal money to deliver food to the elderly, and Head Start which provides early childcare in lower income communities, were worried about getting cut off.

Democratic critics of the order moved swiftly to celebrate the action.

“This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country—real people made a difference by speaking out,” said Sen. Patty Murray, D-Wash. “Still, the Trump administration—through a combination of sheer incompetence, cruel intentions, and a willful disregard of the law—caused real harm and chaos for millions over the span of the last 48 hours which is still ongoing.”

Senate Democratic leader Charles E. Schumer of New York said that “Americans fought back and Donald Trump backed off.

Megerian and Miller write for the Associated Press.