The White House Office of Management and Budget is telling federal agencies to draw up reduction-in-force plans ahead of a possible government shutdown, according to an internal memo obtained by Fox News.

The guidance says agencies must consider issuing RIF notices to employees working on programs that are not legally required to continue if funding lapses.

“With respect to those Federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out,” the memo states.

Under the guidance, RIF notices would be issued on top of furlough notices and should go to all employees tied to the affected programs.

Agencies would later revise those plans once Congress approves fiscal year 2026 appropriations, keeping only the staff needed for core statutory functions.

The memo notes that while Congress has usually passed short-term funding bills on a bipartisan basis, they believe this year is different.

The same memo accuses Democrats of breaking that trend and pushing for “insane demands, including $1 trillion in new spending,” which it says could force a shutdown.

Last week, the House passed H.R. 5371, described as a clean continuing resolution that would extend current funding through late November.

The administration backs the bill, but the memo says Democrats are blocking it in the Senate.

“We remain hopeful that Democrats in Congress will not trigger a shutdown and the steps outlined above will not be necessary,” the memo says.

“The President supports enactment of a clean CR to ensure no discretionary spending lapse after Sept. 30, and OMB hopes the Democrats will agree.”

The reduction-in-force preparations represent a more serious step than typical furlough planning for government shutdowns.

These RIF notices would affect employees whose programs lack statutory requirements to continue during funding lapses.

The White House’s characterization of Democratic demands as “insane” shows the administration’s frustration with spending negotiations.

The $1 trillion in new spending referenced in the memo highlights the scale of disagreement between the parties.

The House’s passage of a clean continuing resolution demonstrates Republican willingness to maintain current funding levels.

Democratic opposition in the Senate suggests they’re demanding additional spending beyond existing levels.

The administration’s preparation for potential layoffs indicates they’re taking the shutdown threat seriously.

Federal employees in non-essential programs face uncertainty about their job security if negotiations fail.

The memo’s language suggests the White House views Democrats as responsible for any potential shutdown.

This strategy puts pressure on Senate Democrats to accept the House’s funding proposal.

The timing creates urgency as the fiscal year ends and new appropriations must be approved.

Government services could face significant disruptions if core programs lose their workforce.

The administration’s dual approach of preparation and blame-shifting reflects standard shutdown politics.

Federal agencies must now balance normal operations with contingency planning for potential workforce reductions.

This situation demonstrates the ongoing dysfunction in Washington’s annual appropriations process.