Horizon cutting-room links, shutdown edition: 2 October 2025

"Trump Uses Shutdown to Maximize Pain for Democrats and Move Forward With Layoffs," New York Times

President Trump aims to inflict maximum political damage on Democrats by halting billions in federal funds and preparing for mass layoffs of government employees.

• The Trump administration has paused or canceled approximately $26 billion in federal funds, targeting programs in Democratic-led states, which the White House describes as wasteful or under review.
• Mass layoffs of government employees are imminent, with the White House budget director indicating that reductions in force could occur within days, a move not typically associated with past shutdowns.
• The administration has halted news broadcasts from Voice of America and furloughed its journalists, marking a significant departure from traditional practices during funding lapses, underscoring the administration's intent to weaponize the shutdown for political gains.

"USPTO Sends Layoff Notices After Trump Administration Threatened Shutdown RIFs," Federal News Network

USPTO announced the closure of its Rocky Mountain Regional Outreach Office in Denver and will implement layoffs following a government shutdown. This decision aligns with the Trump administration's earlier warnings about potential RIFs amid budgetary constraints.

• USPTO will permanently close the Rocky Mountain Regional Outreach Office, continuing a trend of reduced physical presence, with fewer than ten employees remaining at that location as of December 2024.
• The agency's director, John Squires, emphasized that the layoffs are not indicative of employee performance but are aimed at reallocating resources to essential operations.
• The Trump administration has actively encouraged federal agencies to prepare for layoffs during funding lapses, with President Trump suggesting that shutdowns.

"Unions Sue Trump Administration Over Shutdown RIF Plans," Federal News Network

Federal employee unions have filed a lawsuit against the Trump administration to challenge the legality of proposed mass layoffs during the ongoing government shutdown. The American Federation of Government Employees and the American Federation of State, County and Municipal Employees argue that OMB’s decision to conduct RIFs amid a lapse in appropriations is unlawful.

• The unions claim that the OMB's guidance allowing agencies to proceed with RIFs during a shutdown violates federal law, as carrying out RIFs is not permitted during such times.
• The lawsuit requests an injunction against the administration's actions, asserting that the use of federal employees as leverage in budgetary disputes is both arbitrary and capricious.
• President Trump indicated that the administration could implement "irreversible" cuts during the shutdown, further complicating the situation for federal employees who already face uncertainty regarding their jobs and pay.

"Credit Unions Offering No-Interest Loans to Furloughed Federal Workers Amid Shutdown," Washington Business Journal

As the threat of a government shutdown looms, credit unions are stepping in to provide no-interest loans to furloughed federal workers who may face delayed paychecks. With over 353,000 federal employees in the Greater Washington area at risk, financial institutions are offering much-needed assistance to mitigate the economic impact of the impending shutdown.

• Credit unions like Navy Federal and PenFed are offering interest-free loans to federal workers, with repayment automatically deducted from their direct deposits once they resume, easing financial stress during the shutdown.
• Specific relief programs include paycheck advances up to $6,000 and waivers on early withdrawal penalties from retirement accounts, aimed at providing immediate financial support to affected employees.
• Historical context reveals that past shutdowns have prompted similar responses from financial institutions, as they adapt to recurring government funding crises, highlighting the ongoing economic vulnerability of the DC region.

"GSA Halts All Federal Property Disposal During Shutdown," Washington Business Journal

GSA halted all federal property disposal activities as a result of the ongoing government shutdown.

• GSA's suspension of property disposal activities may lead to challenges in managing federal assets during the government shutdown.
• Concerns have been voiced about the financial stability of federally leased spaces outside the GSA fund, particularly regarding potential nonpayment.
• Historical data indicates that previous shutdowns have not resulted in significant delinquencies, but uncertainty remains about how the current administration will handle this situation.