US Civil Servants Threatened With Mass Layoffs If Government Shutdowns Next Week

JAKARTA - The White House has instructed state agencies in the United States (US) to prepare for mass layoffs (PHK) against federal employees (civil servants (PNS) if the US administration's closure or 'shutdown' is set next week.

In a policy in the US, the closure of the government was a situation when the US Congress failed to agree on the budget needed for government operations before the fiscal year began. This led the US federal government to restrict and stop activities, to lay off non-essential workers.

In a memo released late Wednesday, the US Office of Management and Budget (OAB) stated that state institutions should consider layoffs of their employees in federal programs that are not in accordance with the president's priorities or funding will expire next week.

"After the government's potential closure ends, institutions are asked to revise their workforce reduction plans as needed to maintain the minimum number of employees needed to carry out mandatory functions," the memo, which was first reported by Politico, Thursday, September 25, was quoted from AFP.

This policy is different from the previous government closure, where non-essential federal employees were laid off but returned to work after Congress approved the government budget aka the state budget.

The policy in closing the US government this time will not only lay off employees but also remove the positions left behind.

This situation sparked the rejection by a federal union that throughout 2025 continues to face massive layoffs due to efforts from the US Government's Department of Efficiency and other policies in the Trump Administration.

This OMB move increases pressure on Senate Minority Leader Chuck Schumer and DPR Minority Leader Hakeem Jeffries. Both and nearly all Democratic lawmakers have opposed President Donald Trump's Clean Funding Bill and Republican Congressmen impacting the closure of government.

In the memo noted that Democratic Democratic Party members refused to support the government's Net Funding Bill because it demanded to extend the health insurance subsidy which will end at the end of the year, plus the cancellation of Medicaid's cuts in Republican tax and large spending laws.

"Therefore, it is very important for the Government to prepare for the closure of the government if the Democratic Party chooses to do so," the memo reads.