Washington: The United States federal government is approaching a critical moment, with current funding set to expire today. Without a new spending deal, a government shutdown could begin on 1 October, while agencies brace for major job losses.
In a rare move, the White House has told federal departments to prepare for mass layoffs—not just temporary furloughs. This comes as over 100,000 federal workers are expected to leave their posts on Tuesday through a deferred resignation scheme, intensifying concerns over the country’s ability to maintain basic services.
Deferred resignation scheme
The resignation programme, approved earlier this year, allows workers to receive full pay and benefits for up to eight months while on administrative leave. It is expected to cost around $14.8 billion, according to a report released by Senate Democrats in July. However, supporters claim the plan will eventually save the government money. A White House spokesperson said it could reduce federal spending by $28 billion annually.
Largest federal employee reduction since WWII
In total, about 275,000 federal employees are projected to exit through a mix of resignations, early retirements and voluntary separation offers. This marks the largest reduction in the civilian federal workforce since the Second World War, deepening the uncertainty in Washington.
As part of President Donald Trump’s effort to reduce the size of the US federal government, nearly 300,000 civilian employees are expected to leave their positions by the end of 2025.
According to Scott Kupor, Director of the Office of Personnel Management, around 154,000 of them accepted buyout offers and will officially be removed from the payroll on 30 September — the final day of the government’s fiscal year.
This large-scale departure is a result of a wider campaign launched by Trump shortly after taking office, aiming to shrink the 2.4 million-strong federal workforce.
Trump cancels meeting with Democratic leaders
Meanwhile, tensions in Washington are increasing. On Tuesday, President Trump cancelled a planned meeting with top Democratic leaders in Congress, which was intended to address government funding. Democrats criticised the move, saying it blocked progress on reaching a resolution.