US Government shutdown triggers mass layoffs amid budget deadlock

The prolonged US government shutdown, driven by a budget dispute over border wall funding, has led to unpaid leaves and mass layoffs. As tensions rise, nearly 300,000 federal jobs are at risk, severely impacting public services and employee livelihoods.

Post Published By: Karan Sharma
Updated : 11 October 2025, 3:54 AM IST
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New Delhi: In the United States, a shutdown occurs when the government and Congress cannot reach an agreement on the budget. Until a new budget is passed, many government departments cease operations.

This time, the shutdown has been prolonged, primarily due to a conflict between President Donald Trump and Democratic Party leaders. Trump demanded that the budget be allocated for building a wall along the Mexican border, but Democrats opposed it.

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This tension led to the budget not being passed, and the shutdown was implemented.

Shutdown's Impact on Government Employees

Due to the shutdown, many government employees have been placed on unpaid leave. This is affecting not only their daily lives but also putting their jobs at risk.

US President Donald Trump (Source: Internet)

US President Donald Trump (Source: Internet)

Major departments like the US Department of Health and Human Services employ 78,000 employees, of whom 41% have already been furloughed.

Government Layoff Process Begins

The White House Budget Office announced that layoffs have been initiated under a program called Reduction in Force (RIF). This means that employees are now being permanently laid off. Budget Director Russell Vaught confirmed this on the internet, though he did not provide further details.

Strategy to Pressure Democrats

President Trump has clearly stated that layoffs will begin in agencies controlled by Democrats. His goal is to pressure Democratic leaders to approve the budget on his terms. Trump has threatened that if the budget is not passed, approximately 300,000 federal employees could be laid off.

Employee Union Reaction and Legal Battle

Labor unions have challenged this decision of the Trump administration in court. The unions say this decision violates employees' rights. The court will hear the case on October 16.

What do the layoff rules say?

According to government regulations, the government is required to provide 60 days' notice before laying off any employee. However, under special circumstances, this period can be reduced to 30 days. This time, many employees have already been issued layoff notices.

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The ongoing shutdown in the US is no longer just a political battle; it is also threatening the livelihoods of millions of government employees. The layoff process has further exacerbated the situation.

If a solution is not found soon, the impact will not be limited to employees but will also severely impact government services for ordinary citizens.

Location : 
  • New Delhi

Published : 
  • 11 October 2025, 3:54 AM IST

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