The Trump administration is escalating the pressure on Congress by signaling that federal agencies may begin reductions in force (RIFs) if lawmakers fail to agree on a government funding package by September 30. A memo from the Office of Management and Budget (OMB) instructs department leaders to "consider" initiating workforce cuts for any programs, projects, or activities whose funding lapses and that are not aligned with White House priorities.

The memo outlines that if discretionary funding lapses, no alternative funding is available, and a program is deemed inconsistent with administration goals, it should be considered nonessential. In that case, the program "is no longer statutorily required to be carried out," according to the document obtained by Politico.

The move adds a new layer of tension to the already strained negotiations. While the House has passed a Continuing Resolution (CR) to avoid a shutdown, Senate Democrats are demanding the restoration of healthcare funding previously cut. Senate Minority Leader Chuck Schumer called the RIF threats "an intimidation tactic," adding that such firings would be challenged in court or reversed as seen in previous shutdown cycles.

The OMB memo directs agencies to send RIF notices to all employees working on impacted programs, regardless of whether they are excepted or furloughed. Once FY2026 appropriations are passed, RIF plans must be revised to retain only the minimal number of staff necessary to fulfill statutory functions, with final plans submitted back to OMB for review.

Critics argue that this is another example of using public employees as political leverage. The American Federation of Government Employees (AFGE) responded sharply, stating that federal workers "are not bargaining chips" and deserve "stability and respect, not pink slips and political games."

Behind the scenes, the standoff reveals deep divisions not just over spending priorities but over the role of government itself. The Trump administration's memo accuses congressional Democrats of attempting to "break the bipartisan trend" of passing CRs on time and blamed them for proposing "$1 trillion in new spending" as the core obstacle.

If the shutdown proceeds, critical federal services could be disrupted, including those run by the USDA, impacting everything from crop insurance processing to farm loan approvals. These ripple effects will be felt deeply in rural America, where many communities rely on timely federal operations.

With just days left on the clock, and no signs of compromise, the risk of widespread federal staff reductions is now very real-and agriculture professionals, public workers, and agency partners across the country are bracing for impact.