Federal Agency Cuts Loom as Vought and Trump Plan Reforms Amid Shutdown

The Office of Management and Budget chief Russell Vought and President Donald Trump are currently strategizing on potential cuts to the federal government. This decision comes after lawmakers on Capitol Hill failed to agree on a funding bill early Wednesday morning.

In anticipation of a government shutdown, Trump signaled that federal staffing and program cuts could be on the horizon. On Thursday, he shared a message on Truth Social where he characterized many federal agencies as a political scam.

In his social media update, President Trump indicated, “I have a meeting today with Russ Vought, he of Project 2025 fame, to determine which of the many Democrat agencies, most of which are a political scam, he recommends to be cut, and whether or not those cuts will be temporary or permanent.”

Trump further remarked, “I can’t believe the Radical Left Democrats gave me this unprecedented opportunity. They are not stupid people, so maybe this is their way of wanting to quietly and quickly make America great again!”

In discussions with Fox News Digital, Richard Stern, director of the Grover M. Hermann Center for the Federal Budget at the Heritage Foundation, shed light on the agencies potentially targeted for staffing reductions and the permanence of such cuts.

Understanding the Staffing Dynamics

Stern explained that two primary factors shape the size of government staffing. Notably, various laws impose requirements on agencies to deliver specific services to citizens. Concurrently, appropriation bills establish minimum funding levels for these agencies, dictating payroll capacities.

However, during a government shutdown, funding lapses occur. As a result, agencies lose the funding commitments outlined in these bills, granting the executive branch discretion in service provision to the public. Stern elaborated on this point during a phone interview.

“Because the funding bills set effective floors for salary spending, agencies’ staffing levels tend to reflect these constraints. During a shutdown, the administration remains obligated only to fulfill legally mandated services. There are no specifications about the number of employees needed to achieve these tasks,” he said.

Stern noted that the administration could present a plan suggesting an agency, such as the Department of Education, could function effectively with a workforce reduced by 10 percent.

Reduction In Force Notices

If the administration concludes that an agency can operate under its legal obligations with fewer staff, it may issue Reduction in Force notices, or RIFs, to current employees.

Stern stated, “If the funding was available and mandated certain staffing levels, RIFs would not be an option. However, during a funding lapse, the White House gains an opportunity to implement such reductions.”

Yet, the potential for permanent changes in government operations exists in a gray area. RIFs cannot be initiated until 60 days have elapsed post-notification.

“Once the RIF notices are distributed, there is a legal requirement to wait for 60 days before any staffing reductions can take effect. Therefore, if the shutdown lasts beyond 60 days, actual reductions could occur,” Stern explained.

Government Changes Not Focused on Downsizing

Despite the projected cuts, Stern emphasized that these actions should not be misconstrued as government downsizing.

“What is happening is not a reduction in services or agency activities. Rather, it is a reduction in the workforce while maintaining the same service levels and offerings,” he added.

White House Press Secretary Karoline Leavitt addressed the matter, stating that thousands of federal employees could face layoffs during an impending shutdown.

“Look, it’s likely going to be in the thousands. That is a very good question. Unfortunately, this is something the Office of Management and Budget and our entire team here at the White House is currently working on,” Leavitt remarked.

Potential Agencies Facing Cuts

Stern identified several agencies likely to be targeted for cuts, suggesting those that have extended their missions into regulatory areas without clear mandates. For example, he named the Environmental Protection Agency and the National Science Foundation as candidates for review.

“The Department of Education, in particular, fits the narrative here. They have expressed the need for approximately 10 percent of their current staffing,” he elaborated.

Stern also highlighted the EPA, Department of the Interior, and Department of Labor as agencies at risk due to their expanded regulatory roles that could harm the economy and American families.

“The EPA has, over the past decade or so, ballooned its responsibilities into various regulatory affairs that exceed their statutory limits,” Stern stated. “They are operating beyond the framework provided by Congress, making workforce reductions there logical.”

Additionally, agencies such as the National Science Foundation and certain divisions within the Department of Housing and Urban Development might also see staffing reviews, especially in roles related to grant administration, which often involve significant legal discretion.

Stern remarked, “These grants do not serve any vital or constitutionally mandated roles. Often, the funding ends up benefiting universities and promoting ideologies that do not align with broader national interests.”

Trump’s Position on the Shutdown

In several public statements leading up to the impending shutdown, Trump has framed the situation as an opportunity for the administration to streamline operations, eliminate waste, and prevent fraud while voicing discontent about the government shutdown itself—a sentiment he attributes to Democrats.

“We do not want it to shut down, especially as we are in a very prosperous period,” Trump asserted from the Oval Office. “We are on the cusp of $17 trillion in investment. We are the last ones wishing for a shutdown.”

However, he continued, the shutdown could enable irreversible administrative changes, stating, “We can seize this moment to eliminate a plethora of programs and personnel that we believe do not benefit our goals.”

Political Implications of the Shutdown

Republicans have shifted blame for the potential shutdown onto Democrats, accusing them of obstructing budget funding to reinstate taxpayer-funded medical benefits for undocumented immigrants. Democrats label this accusation as false, redirecting the blame back onto Republicans.

Trump summarized the situation, stating, “A lot of beneficial changes can emerge from shutdowns. We can eradicate undesirable features of government, leaving behind those policies favored by Democrats that aim for open borders, gender identity chaos in sports, and all such matters that do not reflect the sentiments of the majority.”

Slighting the size of the federal government has been a focus for Trump’s second administration since its inception. The president launched the Department of Government Efficiency to combat potential fraud and waste while offering voluntary buyouts for federal employees earlier this year.

Fox News Digital sought comments from the Office of Management and Budget regarding the expected cuts but did not receive a response in time for publication.

Reporting contributed by Elizabeth Elkind and Anders Hagstrom of Fox News Digital.