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A Shutdown Like No Other: Mass Layoffs Have Begun as Missed Military Paychecks Loom

TradingKeyOct 11, 2025 6:12 AM

TradingKey - With Congress still failing to pass a spending bill, the U.S. government shutdown entered its 10th day on October 10. In a move to pressure Democrats, the Trump administration confirmed on Friday it has officially launched a federal workforce reduction program (RIFs) — marking the first time in history that layoffs, not just furloughs, are being implemented during a shutdown.

Beyond this unprecedented personnel cut, if Congress fails to act before October 15, active-duty U.S. military personnel may go unpaid — another historic first in past government crises.

Historic Federal Workforce Cuts Begin

On Friday, October 10, Russ Vought, Director of the White House Office of Management and Budget (OMB), announced on social media:

“The RIFs have begun.”

President Donald Trump added that the number of cuts would be revealed in the coming days, saying that ut will be a lot.

According to newly filed court documents, the U.S. government plans to eliminate at least 4,100 federal positions during the shutdown, with many of the affected employees worked for programs that were Democrat-oriented or were people that the Democrats wanted.

Specific departments and roles affected have not yet been disclosed, but potential targets include staff at:

  • Department of Health and Human Services
  • Department of Homeland Security
  • Treasury Department
  • Department of Commerce

In previous shutdowns, non-essential federal workers were placed on unpaid furloughs, with back pay guaranteed once funding resumed. This time, permanent layoffs signal a dramatic escalation — turning a temporary budget dispute into a structural workforce purge, and increasing the risk of a prolonged stalemate over spending and healthcare subsidies.

Trump’s Strategy: Targeted Pressure on Democrats

Bloomberg reported that the Friday layoffs are part of Trump’s strategy to maximize political impact on Democratic voters, framing his priorities around “essential services” while treating other functions as expendable.

Senate Majority Leader John Thune said he hopes the pressure will make enough Senate Democrats come to their senses, do the right thing and fund the government.In contrast, Senate Minority Leader Chuck Schumer condemned the move as an insult to American workers.

Military Pay at Risk — Another First

Even more alarming: if no funding is approved by October 15, approximately 2 million active-duty U.S. service members could miss their paycheck — an outcome never seen in prior shutdowns.

In past shutdowns — including the 13-day 2013 shutdown and the 35-day 2018–2019 shutdown — Congress passed special legislation to ensure military salaries were protected in advance.

This time, the administration says it will use funds from a tax and spending bill signed by Trump in July to cover military pay. However, whether these funds are sufficient remains uncertain.

Adding to the risk, the House has canceled next week’s legislative voting schedule, making it impossible for Congress to pass a funding bill before the October 15 payroll deadline.

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