Trump Admin Official Says Government Shutdown an Opportunity for Mass Layoffs

‘We will be looking for opportunities to do that,’ OMB Director Russell Vought says.

Office of Management and Budget Director Russel Vought, joined by Vice President JD Vance, Speaker of the House Mike Johnson (R-La.), and Senate Majority Leader John Thune (R-S.D.), speaks at the White House on Sept. 29, 2025. Madalina Kilroy/The Epoch Times

The director of the Office of Management and Budget (OMB) signaled Tuesday that the government shutdown that began today is an opportunity to carry out mass federal layoffs.

When asked about reports that hundreds of thousands of federal workers could lose their jobs during the process, OMB Director Russell Vought said that the White House has been aiming to shrink the size of the federal government.

“Let it be said: There are all manner of authorities to be able to keep this administration’s policy agenda moving forward, and that includes reducing the size and scope of the federal government, and we will be looking for opportunities to do that,” Vought told Fox Business’ Larry Kudlow on Tuesday.

The OMB director made those comments just hours before he signed a memo, uploaded to social media, directing government agencies to shut down while blaming congressional Democrats, who voted in the Senate to defeat a House-backed bill to fund the federal government through Nov. 21.

“As such, affected agencies should now execute their plans for an orderly shutdown,” Vought wrote, adding, “It is unclear how long Democrats will maintain their untenable posture, making the duration of the shutdown difficult to predict.”

He added that federal employees should still “report to work for their next regularly scheduled tour of duty to undertake orderly shutdown activities,” according to the memo.

“We will issue another memorandum indicating the government functions should resume once the President has signed a bill providing for appropriations,” he said.

President Donald Trump has warned that he may lay off federal workers and may target federal programs favored by Democrats should they force a shutdown.

“We’re doing well as a country, so the last thing we want to do is shut it down, but a lot of good can come down from shutdowns. We can get rid of a lot of things that we didn’t want,” Trump told reporters on Tuesday.

At the same time, top Republicans such as House Speaker Mike Johnson (R-La.) and the White House have started criticizing Democrats over the shutdown. Minutes after the clock struck midnight on Wednesday, the White House released a post on social media that included all zeroes and stated, “Democrat Shutdown!”

Democrats offered similar messaging against Republicans and the Trump administration.

“Donald Trump and Republicans have shut the government down because they don’t want to provide healthcare to working-class Americans,” House Minority Leader Hakeem Jeffries (D-N.Y.) said during an interview with ABC’s “Good Morning America” on Wednesday.

Under the shutdown order, roughly 750,000 federal workers are expected to be furloughed, and many offices will be shuttered. When a lapse in funding occurs, U.S. law requires federal agencies to cease activity and furlough “non-excepted” employees. Excepted employees stay on the job but don’t get paid until after the shutdown ends, and depending on how long the shutdown lasts, that can create financial stress for many families.

Republicans crafted a short-term measure to fund the government through Nov. 21, but Democrats insisted the measure include a number of extra measures on health care. They want to reverse the Medicaid cuts in the One Big Beautiful Bill Act passed this summer and extend tax credits that make health insurance premiums more affordable for people who purchase through the marketplaces established by the Affordable Care Act.

The Associated Press contributed to this report.