Shutdown Layoffs Target Federal Workers During a Funding Standoff

During the federal government shutdown that began in fiscal year 2025, agencies issued layoff notices to federal workers across multiple departments rather than relying solely on temporary furloughs, which had been the traditional approach during funding lapses.

The move was criticized as using a budget impasse as an occasion to pursue permanent workforce reductions rather than temporary status changes tied strictly to the funding gap, raising questions under civil-service protections and appropriations law about whether such layoffs during a shutdown were procedurally and substantively lawful. The approach represented a departure from prior shutdown practice regarding federal employment.

The layoffs were challenged under civil-service and appropriations law; the record does not specify a final judicial resolution.