Trump Admin Orders Permanent Federal Job Cuts As Democrats Push Shutdown Over $1.5 Trillion Spending Spree

The Trump administration is preparing to go beyond temporary furloughs, with the Office of Management and Budget now directing federal agencies to draft permanent reduction-in-force (RIF) plans in the event of a government shutdown.

A memo from OMB Director Russ Vought, obtained by POLITICO, tells agencies to identify programs that are no longer aligned with President Trump’s agenda — and to prepare plans to shut them down for good. The focus is on eliminating waste, not pausing it.

This signals a sharp escalation. Instead of the usual political theater over shutdowns, the Trump White House is taking real steps to shrink government and root out bloated programs long shielded by Democrats. The message is clear: If Democrats won’t fund the government responsibly, don’t expect a quick return to business as usual.

What’s driving the standoff? Democrats are demanding roughly $1.5 trillion in new spending to keep the lights on — including billions for their favorite pet projects. The Trump administration and House Republicans passed a stopgap bill to fund the government through November 21. Senate Democrats refused to move it forward.

It’s a stunning reversal. For years, Democrats warned that shutdowns were dangerous and irresponsible. They claimed to care about veterans, families, and small businesses. Now they’re the ones pushing toward the cliff.

Among the “non-negotiables” Democrats are demanding: massive boosts to federal healthcare subsidies, billions in new climate spending, more cash for DEI programs, and expansions of free housing and student loan forgiveness. The White House estimates the total price tag at $1.5 trillion.

Some Senate Republicans say the Democrats have overplayed their hand. “President Trump is making it clear: the American people should not be held hostage by Washington’s reckless spending habits,” said Sen. Shelley Moore Capito (R-WV). “Democrats don’t have the leverage they think they do.”

Even a few Democrats are warning of political fallout. Sen. John Fetterman (D-PA) privately admitted that his party walked into a “honey trap” by making expanded healthcare funding their red line. Others, like Sen. Chris Murphy (D-CT), once insisted budget debates should never put basic government operations at risk — but are now doing exactly that.

Senate Majority Leader Chuck Schumer (D-NY) is brushing off the permanent job cuts as “intimidation,” vowing that the courts will reverse them. But legal analysts say the administration has broad authority to terminate unfunded programs.

Rep. Mike Lawler (R-NY) summed it up: “For years, Democrats shouted that shutdowns were immoral and destructive. Now they’re fine with plunging the government into chaos because they want $1.5 trillion more for their wishlist. It’s the height of hypocrisy.”

While Democrats stall, the Trump administration is pushing forward — preparing to shrink government, not just pause it. The political risk now lies squarely with the party demanding billions more in spending while blaming others for the consequences.