Leaked Memo Reveals Push to Use Shutdown for Federal Layoffs
civil service protections federal employment merit system integrity mspb appeals shutdown rif Oct 28, 2025A newly leaked document confirms what many suspected: some in Washington saw the recent shutdown not just as a funding lapse, but as an opportunity to reshape the federal workforce. According to Politico, former OMB Director Russ Vought urged agencies—especially the Department of Health and Human Services—to use the shutdown as “cover” to lay off thousands of employees.
In total, the plan aimed to eliminate nearly 8,000 jobs, including over 4,500 positions at NIH alone. But agency leadership pushed back. Within two weeks, the number of layoffs dropped from 1,760 to 954, and nearly half were later rescinded. NIH ultimately terminated no one. What was billed as a bureaucratic “streamlining” effort quickly unraveled under confusion, court injunctions, and mis-coded notices.
The Legal Line Between Policy and Overreach
Shutdowns are not blank checks for workforce cuts. Federal law sets strict rules for reductions in force (RIFs), including notice periods, retention rights, and appeal opportunities before the Merit Systems Protection Board (MSPB). A lapse in appropriations does not erase those rights—or the statutory mandates that keep agencies running.
When leadership tries to convert a temporary funding lapse into a mass layoff, it risks violating both the Administrative Procedure Act and the merit system principles that protect career employees. The courts have already stepped in once, issuing injunctions to halt “shutdown RIFs” that appeared arbitrary and politically driven.
Quiet Resistance Inside Government
If there’s a silver lining, it’s this: many agency leaders refused to go along. Within HHS and other departments, internal pushback slowed or stopped the most extreme directives. That resistance underscores an important truth about federal service—career professionals are not powerless. The merit system exists precisely to insulate public service from political whiplash.
Still, the leak raises sobering questions. What happens when political appointees issue directives that senior officials believe are unlawful or reckless? What obligations do agency lawyers and inspectors general have to intervene? These aren’t abstract concerns—they strike at the heart of how our government balances policy leadership with professional integrity.
Staying Grounded Amid Uncertainty
For federal employees, the lesson is twofold: vigilance and steadiness. Track your employment status carefully during a shutdown, and seek legal guidance if you receive any notice that doesn’t align with agency policy or law. And when the noise of politics feels overwhelming, anchor yourself in what’s real—your work, your mission, and your rights.
Southworth PC will continue monitoring how these “shutdown layoff” efforts evolve in court and across the workforce.
Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.
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