Tuesday, November 4, 2025

Trump administration suggests layoffs ‘imminent’ as some federal staff told to ‘blame Democrats’ in out of office email notes – live

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White House warns layoffs are imminent if shutdown drags on

Leavitt tells reporters that government agencies are already preparing for cuts and “layoffs are imminent”.

“Unfortunately, because the Democrats shut down the government, the president has directed his cabinet and the Office of Management and Budget is working with agencies across the board to identify where cuts can be made and we believe that layoffs are imminent,” she says.

Key events

Chris Stein

Chris Stein

Hakeem Jeffries and Chuck Schumer, the top Democrats in the House of Representatives and Senate, respectively, and both New Yorkers, accused the Trump administration of retaliating against their constituents by putting billions of dollars to revamp transportation infrastructure on hold.

Hours after government funding lapsed and federal departments and agencies shut down, the transportation department announced the freeze on about $18bn that would pay for a new rail tunnel connecting New York to New Jersey, and a major New York City subway project.

“Donald Trump is once again treating working people as collateral damage in his endless campaign of chaos and revenge,” Schumer and Jeffries said in a joint statement.

“The Gateway Tunnel and Second Avenue Subway aren’t political trophies — they are lifelines. They mean tens of thousands of good-paying union jobs. They mean shorter commutes, safer travel and a stronger economy not just for New York, but for the entire nation. Choking off these projects out of spite will damage America’s competitiveness and cost working families dearly.”

Russell Vought, the director of the White House office of management and budget, announced the funding cancellation on social media, citing “unconstitutional DEI principles”.

An architect of the Trump administration’s campaign to downsize the federal government, Vought also threatened mass layoffs of government employees, if a shutdown occurs. Earlier today, White House press secretary Karoline Leavitt warned “layoffs are imminent” if funding is not restored.

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