White House Press Secretary Karoline Leavitt has warned that federal agencies are preparing for potential mass layoffs if a stopgap spending bill is not passed, leading to a government shutdown. As Congress approached a critical funding deadline, the Republican-led House passed a continuing resolution, but it has stalled in the Senate, where Democrats are pushing for additional measures. Leavitt emphasized that the administration wants to keep the government open and accused political opponents of risking federal workers’ livelihoods.

In a press briefing, Leavitt stated that President Trump has invited Democratic leaders to the White House for discussions, urging them to avoid a shutdown. She framed the situation as an opportunity for bipartisan cooperation and called on lawmakers to set aside political differences for the sake of government continuity and public service.

The Office of Management and Budget (OMB) has issued guidance instructing agencies to prepare for a reduction in force (RIF) if funding lapses on October 1. Employees tied to programs that are not legally required during a funding gap would receive furlough or RIF notices. Agencies have also been directed to reassess staffing once a final budget is approved for the 2026 fiscal year.

The guidance noted that while short-term funding bills are usually passed on a bipartisan basis, the current negotiations have been more contentious. At the center of the impasse is the Senate’s refusal to take up H.R. 5371, a temporary funding bill that maintains current spending levels until November 21. The administration supports this “clean” resolution as a practical step to prevent disruptions.

President Trump has previously implemented workforce reductions as part of his administration’s efforts to streamline government operations. A shutdown could accelerate such actions if a funding resolution is not reached.

With non-essential federal employees and contractors preparing for disruptions, and markets reacting to the uncertainty, the administration remains hopeful an agreement will be reached before the deadline expires.