The Trump administration has intensified mass layoffs of federal workers following the government shutdown that kicked off last week. In an X post on October 10, Russell Vought, Director of the Office of Management and Budget, confirmed that “RIFs” — short for reductions in force — have officially commenced. The administration had previously warned that such measures could be implemented across federal agencies. Regarding the layoff, the White House did not state the exact number of federal employees to be affected by the layoff. However, officials hinted at departments that would be affected. This includes departments such as Treasury and Health. These widespread layoffs have raised concerns among individuals as they anticipate that they might significantly increase the economic-related risks associated with the government shutdown . During usual shutdowns, federal employees labeled as non-essential go on furlough and can receive payment for their lost wages once funding resumes. Trump’s decision to lay off federal workers raises heated debates among individuals Earlier, Trump made public his intention to permanently terminate federal employees from the workforce and threatened workers who were furloughed that they would not receive back pay. The president’s statement has worsened the shutdown’s effects on government employees and the economies they support. Vought, who offered assistance in writing the Project 2025 plan for Republicans to gain control of the White House, strongly advocated for reducing the number of federal workers and making changes to the federal government. On the other hand, Lee Saunders, the president of AFSCME, a powerful group representing government workers, referred to the mass firing as an illegal act and cautioned the Trump administration that implementing such an act could result in devastating effects. “Whether these federal employees are food inspectors, public safety workers, or perform many other public service roles that enable America to keep running, federal workers should not be used as pawns in this administration’s political games,” Saunders stated. He further mentioned that they will investigate every legal choice to stop the Trump administration’s illegal attacks on the rights and jobs of public service workers. Democrats have also commented on the situation. They swiftly criticized the layoffs, with Chuck Schumer, the Minority Leader of the United States Senate, alleging that this is deliberate chaos in America. According to Schumer, the Trump administration has thoughtlessly decided to harm people — the workers who protect their nation, check their food, and offer help during emergencies. US Democrats call for an extension of health insurance subsidies Some Republicans also appeared uneasy about the move. Senator Susan Collins, a Republican of Maine, said she strongly opposed Vought’s announcement and warned that it would hurt families in her state and elsewhere. The shutdown began on October 1, when Democrats declined to back a temporary proposed bill that Republicans had hoped would fund the government until late November. Concerning the proposed bill, Democrats pointed out that they would support it only if Republicans committed to negotiating an extension of health insurance subsidies, which are scheduled to expire at the end of the year, potentially increasing medical coverage costs for tens of millions of Americans. Additionally, some Republicans, including Marjorie Taylor Greene, a representative from Georgia, started to raise concerns about their party’s stance, stating that a solution for the expiring healthcare subsidies needs to be found. Greene shared an X post highlighting that Democrats created this problem in 2010, which worsened in 2021, while Republicans never addressed it. Meanwhile, US President Donald Trump has announced that he will impose an additional 100% tariff on imports from China starting next month. In a post on social media, Trump stated that the US would also impose export controls on critical software. In an earlier post on Friday, he hit back at Beijing’s move this week to tighten its rules for exports of rare earths, accusing China of “becoming very hostile” and trying to hold the world “captive”. He threatened to withdraw from a meeting with China’s President Xi Jinping. He later said he had not cancelled it, but that he did not know “that we’re going to have it”. Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
