Trump Shutdown Layoffs: Federal Employees Returning to Work Amid Threats (2025)

The ongoing government shutdown has sparked a heated debate, with the Trump administration's threats of mass layoffs looming over federal employees. While the administration doubles down on its ultimatum, a unique twist has emerged: one agency is bucking the trend, reinstating hundreds of previously laid-off workers.

President Trump's recent comments about layoffs have caused confusion, with White House Press Secretary Karoline Leavitt clarifying that he was referring to the furlough of hundreds of thousands of federal workers. This has left millions of Americans in a state of financial uncertainty, wondering how they'll manage their bills and support their families.

Leavitt's statement last week, indicating imminent layoffs in the thousands, has added to the tension. The Office of Management and Budget (OMB) has also warned Republican lawmakers of impending layoffs in the coming days.

However, amidst this turmoil, the General Services Administration (GSA) has taken a different approach. On Monday, GSA brought hundreds of employees back to work to manage its extensive real estate portfolio, rescinding reduction-in-force notices that had been issued months ago. This move has provided a glimmer of hope for some, as GSA employees confirmed that the shutdown hasn't hindered their plans to reinstate these workers, who will continue to receive timely payments during the lapse.

GSA's updated contingency plans highlight the agency's commitment to keeping a majority of its Public Buildings Service (PBS) employees working throughout the shutdown. Approximately 64% of GSA employees are exempt from the current shutdown, thanks to carryover funds and non-appropriated resources.

PBS, with its 'no-year' funds, can continue normal operations, paying its staff and covering expenses. During a shutdown, federal buildings remain accessible to employees, and construction contracts funded by carryover funds continue uninterrupted. However, GSA's work to sell and dispose of underutilized federal buildings is put on hold, aligning with the Trump administration's goal to reduce its real estate portfolio by about 50%.

The Antideficiency Act prevents agencies from obligating funds during a shutdown, but federal employees are often exempt or excepted if their work protects human life or property. The Trump administration has justified the deployment of the National Guard in cities like Chicago and Portland based on this principle.

Former PBS Commissioner Norman Dong's white paper highlights the potential impact of a prolonged shutdown on federal leasing, suggesting that the government may need to take unprecedented steps to fund its rent obligations. GSA's contingency plans acknowledge that the number of exempt employees will decrease as carryover funds are exhausted, and in some cases, exempt employees may become 'excepted,' continuing to work without timely pay until the shutdown ends.

As the shutdown continues, the fate of federal employees hangs in the balance, with the GSA's unique approach offering a glimmer of stability amidst the uncertainty.

What are your thoughts on the administration's handling of the shutdown and its impact on federal workers? Do you think the GSA's strategy is a step in the right direction? Share your opinions in the comments below!

Trump Shutdown Layoffs: Federal Employees Returning to Work Amid Threats (2025)

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