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Trump, Vought look to pressure Dems with federal layoffs

Happy Thursday morning.
President Donald Trump is threatening large-scale firings of federal workers if the federal government shuts down next week, a nuclear tactic to make any funding lapse as painful as possible for Democrats.
In an extraordinary memo sent out by OMB Wednesday, the White House directed federal agencies to come up a with a list of “reductions in force” – layoffs – for workers whose activities aren’t paid for via mandatory funds, didn’t get new money from the One Big Beautiful Bill or whose “PPA [programs, projects or activities] is not consistent with the President’s priorities.”
More from OMB: “Once fiscal year 2026 appropriations are enacted, agencies should revise their RIFs as needed to retain the minimal number of employees necessary to carry out statutory functions.”
OMB didn’t provide any information on the scale of the possible firings. Politico reported that the potential layoffs wouldn’t apply to “Social Security, Medicare, veterans benefits, military operations, law enforcement, Immigration and Customs Enforcement, Customs and Border Protection and air traffic control,” according to an OMB official.
The unprecedented move by OMB Director Russ Vought dramatically raises the stakes of the shutdown fight just five days before the deadline. And it comes as the two sides still aren’t talking about how to avoid an Oct. 1 shutdown. Speaker Mike Johnson, who pushed through a “clean” Nov. 21 CR last week, isn’t even planning on bringing his chamber back until after a shutdown has begun.
For a demoralized federal workforce that’s already been decimated by tens of thousands of DOGE-related layoffs, a lengthy shutdown – with no paychecks – would be a nightmare. The new threat means a shutdown could be the end of their government careers unless Congress or the courts stop it.
Democrats view this OMB memo as an intimidation tactic intended to bully them into accepting the House-passed “clean” CR. That’s not to say it’ll work. But Democrats know that shutdowns are already painful, and what Trump is threatening to do on top of that would be catastrophic.
Senate Minority Leader Chuck Schumer, however, downplayed Vought’s threat:
“This is an attempt at intimidation. Donald Trump has been firing federal workers since day one — not to govern, but to scare. This is nothing new and has nothing to do with funding the government. These unnecessary firings will either be overturned in court or the administration will end up hiring the workers back, just like they did as recently as today.”
You’ll recall that back in March, Schumer justified his decision to help Republicans keep the government open by arguing that Trump and Vought would try to maximize the pain of a shutdown.
Schumer is now demanding a negotiation over more than $1 trillion worth of health care-related policy changes and new restrictions on Trump’s ability to withhold funds. Those asks look quaint in the wake of OMB saying they’ll axe government employees during a shutdown.
“This is Russ Vought’s trademark chaos,” Rep. Rosa DeLauro (Conn.), the top Democrat on the House Appropriations Committee, said in response to the OMB memo.
“Instead of coming to the table to negotiate lowering costs and addressing the health care crisis Republicans created, the White House is staging harmful charades like this that will impact all Americans,” DeLauro said.
Dems hardening their stance. House Minority Leader Hakeem Jeffries said earlier Wednesday that a bipartisan health care agreement needs to be “in legislation” in order for House Democrats to support any stopgap funding bill. Jeffries added that a verbal commitment from GOP leaders to address the Obamacare enhanced subsidy cliff wouldn’t be sufficient.
In a post on X, Jeffries bashed Vought over the new memo, saying, “We will not be intimidated by your threat to engage in mass firings… Get lost.”
In his campaign account, Jeffries urged Virginia voters – who have a gubernatorial election coming up – to “Remember in November.”
Yet as House minority leader, Jeffries has the easier job here. House Democrats can vote “no” without causing a shutdown. Schumer and Senate Democrats don’t have that luxury. Regardless of whether a deal is struck before Oct. 1 or after a shutdown takes hold, it’ll be extraordinarily difficult for Schumer to come out of this unscathed.
Schumer has repeatedly emphasized his alignment with Jeffries following the March debacle. Schumer, though, would be hard-pressed to echo Jeffries’ comments that any deal needs to be in legislation, at least publicly. If Schumer takes that specific of a position, the veteran party leaders would look bad if he accepts something different in the end.
While some Senate Democrats are very clearly agitating for a shutdown — or at least some sort of high-profile clash with the Trump administration — others are already starting to channel their fears about the catastrophic impacts of such a move.
“If [congressional] leadership and the president just behave like adults and sit down at the table and work this out, this is not something that can’t be worked out,” Sen. Jeanne Shaheen (D-N.H.) told us Wednesday.
The New Hampshire Democrat is adamant that there’s a deal to be had on enhanced Obamacare subsidies her party is pressing for. She also noted that the Senate Appropriations Committee has made good headway on bipartisan funding bills. A shutdown — especially the kind Vought is threatening — could all but destroy the prospects for a long-term funding deal.
The OMB threat, however, helps explain why many Democrats have cast doubt on the viability of a bipartisan deal on FY2026 appropriations that Senate Majority Leader John Thune is pushing for. These Democrats note that Vought has shown he’ll ignore cross-party agreements anyway.
Happening today. Jeffries will be our guest on Fly Out Day. What a time to have the top House Democrat at the Punchbowl News Townhouse.
— Andrew Desiderio, John Bresnahan, Jake Sherman and Laura Weiss
OCTOBER EVENTS
Join Punchbowl News for a conversation with Rep. Richard Hudson (R-N.C.) on Thursday, Oct. 9, at 9 a.m. ET. We’ll discuss the news of the day, 5G and spectrum policy. Save your spot today!
PRESENTED BY AMERICA’S CREDIT UNIONS AND DCUC
CREDIT UNIONS IN ALL 50 STATES OPPOSE THE DURBIN-MARSHALL CREDIT CARD MANDATES: Credit unions in every state are united in opposition to the Durbin-Marshall Credit Card Mandates that would harm local financial institutions and the communities they serve. Durbin-Marshall jeopardizes access to credit for over 140 million credit union members. Make no mistake: Lawmakers should stand with our nation’s credit unions and their constituents to adamantly oppose the Durbin-Marshall mandates.
DEFENSE DOLLARS
No pushback from DoD yet as shutdown looms
A common ritual during the increasingly regular government shutdown fights is for the individual military branches to write to lawmakers warning how a funding lapse would threaten national defense.
That practice may not hold this time around.
With less than a week before the Sept. 30 funding deadline, the individual heads of the military branches have yet to send correspondence to lawmakers about the impact of a shutdown, two people familiar with the matter said.
The Office of the Secretary of Defense is preparing a document, according to a person familiar with the matter. But it’s not clear if a final version will be sent to the Hill. Overall, there isn’t a lot of urgency among military leaders to sound the alarm about the repercussions of a shutdown.
This approach stands in contrast to recent years. In late 2023, for example, the secretary of defense, chair of the Joint Chiefs of Staff and heads of the Army, Navy and Air Force all penned letters to top Senate appropriators before Congress passed its so-called “laddered” stopgap funding bill to avoid a shutdown. They warned that a year-long continuing resolution would delay the development of certain weapon systems, impede some military construction projects and jeopardize readiness.
The silence from military leaders is another indication of how the Trump administration appears to be handling the preparations for a shutdown differently than in the past. As we detailed above, the OMB has drafted a memo directing federal agencies to prepare plans for laying off a raft of employees if the government isn’t funded beyond this month.
The reconciliation factor. The lack of engagement from military leaders with the Hill on a potential shutdown comes after Congress recently made sure to fill the Pentagon’s coffers.
The Defense Department made out well in the Republican reconciliation package and under the current full-year stopgap spending plan enacted earlier this year. Both those bills have raised questions within the military about the necessity of sending out the usual missives if Congress will ultimately put more money toward national security anyway, a person familiar with the situation indicated.
— Briana Reilly

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Tech: Guthrie wants probe of BrainCo
House Energy and Commerce Committee Chair Brett Guthrie (R-Ky.) is urging the administration to probe potential threats posed by a brain tech company that reportedly has ties to the Chinese government and access to Americans’ data.
Guthrie, along with Republican Reps. Gus Bilirakis (Fla.) and John Joyce (Pa.), sent letters to the Justice Department, Commerce Department and Federal Trade Commission pushing for “swift action to investigate and address” any concerns around the firm, known as BrainCo.
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“We urge the Administration to investigate BrainCo for risks to American national and economic security and to protect Americans’ personal information from potential access by a foreign adversary.”
Guthrie’s request follows a report from the investigative outlet Hunterbrook, which said the firm is “quietly backed by Chinese government-linked entities” and “likely harvested the brain data of elite athletes and schoolchildren globally.”
BrainCo didn’t respond to our request for comment on the lawmakers’ letter. In a statement on its website, however, the firm said it doesn’t share or “provide user data to any government, of any country, under any arrangement.” It labeled recent unnamed media reports as “inaccurate and false.”
The company touts a “brain-computer interface,” including a sleep device and its EEG-monitoring wearable aimed at “athletes, wellness seekers and stressed employees.” BrainCo, which lists its headquarters in Boston, also has connected prosthetics, like Elon Musk’s Neuralink. It celebrates the potential of its technology for rehabilitation.
But Guthrie, Bilirakis and Joyce said the firm is actually based in Hangzhou, China, and is one of a handful of “leading technology companies supporting the Chinese Communist Party’s (CCP) ambitions to dominate new and emerging technologies.”
BrainCo is subject to legal obligations on Chinese businesses to “cooperate with and answer to the CCP,” the three lawmakers wrote. They also said the firm admitted, in its privacy policy, “to collecting personal information from ‘any given person using our devices and applications, including people under the age of 18.'”
BrainCo said its devices process user information without sending it to company servers and then delete that data after each session. The privacy policy, which the lawmakers said they had accessed earlier this month, doesn’t currently contain that line.
— Ben Brody
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PRESENTED BY AMERICA’S CREDIT UNIONS AND DCUC

CREDIT UNIONS IN ALL 50 STATES OPPOSE THE DURBIN-MARSHALL CREDIT CARD MANDATES.
REDISTRICTING WARS
Ohio Republicans slow-walk redistricting
Ohio is one of the few states that is actually required to do a mid-decade redistricting for 2026. But that mandate hasn’t made the process easy.
Redistricting in the state is in limbo as Republicans trudge through a convoluted constitutional process to secure a new map and weigh just how aggressive to be in that redraw.
Per the state’s constitution, Ohio’s congressional map is only good for two cycles if the redistricting commission passes it without bipartisan support. So lawmakers must draw again ahead of 2026.
Ohio’s 15-member delegation consists of 10 Republicans and five Democrats. In 2022, Republicans initially tried to push through a more favorable map only to be stymied by the Ohio Supreme Court. But the court has become more conservative since that ruling, leaving the GOP optimistic about getting a redrawn map in place for the midterms.
Ohio Republicans are very likely to try to draw out Democratic Reps. Emilia Sykes, in the Akron area, and Marcy Kaptur, in Toledo. The question is whether or not they’ll also target Democratic Rep. Greg Landsman in Cincinnati, per sources close to the process.
The timeline. Ohio Republicans have already indicated that they will blow past the Sept. 30 deadline to draw a map.
Once that happens, a bipartisan commission will attempt to draw a map that passes with support from both Democratic and Republican commissioners. In today’s hyperpartisan climate, no one believes this can happen. If the commission misses the Oct. 31 deadline, the legislature gets another go.
This time, the legislature can pass a map with a simple majority, but they have to follow some additional guidelines concerning things like compactness and county splits. Their deadline is Nov. 30, and that’s the one that really matters.
– Ally Mutnick
THE CAMPAIGN
We have a bunch of campaign news for you today.
Government funding. Protect Our Care is running a nationwide $100,000 ad campaign that says congressional Republicans are “demanding massive health care cuts or they’ll shut down the government.” The ad buy is an initial marker of how the government funding standoff is playing out on the airwaves. The ads, mainly running on Facebook, target four senators and 10 House members.
South Dakota. The Republican Main Street Partnership is launching a $100,000 ad buy to boost Rep. Dusty Johnson (R-S.D.), the former Main Street chair, in his gubernatorial campaign. The ad praises Johnson for working to pass the GOP reconciliation bill.
Wisconsin. Rep. Tom Tiffany’s (R-Wis.) gubernatorial campaign is hosting a fundraiser in Milwaukee next month featuring some big names. GOP megadonor Liz Uihlein and former RNC Chair Reince Priebus are among the co-hosts.
Ohio. Some notable GOP political operatives and the telecom company Charter Communications are hosting a fundraiser on Sept. 30 for Sen. Jon Husted (R-Ohio). Among the co-hosts are Garrett Ventry and former NRSC Executive Director Jason Thielman.
— Max Cohen and Ally Mutnick
PRESENTED BY AMERICA’S CREDIT UNIONS AND DCUC

CREDIT UNIONS ARE AGAINST THE DURBIN-MARSHALL CREDIT CARD MANDATES.
MOMENTS
ALL TIMES EASTERN
11:15 a.m.
President Donald Trump will meet with Turkish President Recep Tayyip Erdogan in the Oval Office.
3:30 p.m.
Trump will sign executive orders.
4:30 p.m.
Trump will meet with Pakistani Prime Minister Shehbaz Sharif in the Oval Office.
CLIPS
NYT
News Analysis: “With His Pivot on Ukraine, Trump May Be Washing His Hands of the War”
– David E. Sanger
WaPo
“Va. federal prosecutors preparing to seek Comey indictment, people familiar with matter say”
– Salvador Rizzo, Jeremy Roebuck and Perry Stein
Bloomberg
“Erdogan Visits Trump White House With $50 Billion Shopping List”
– Selcan Hacaoglu and Kate Sullivan
WSJ
“Trump Vowed to Try to Head Off West Bank Annexation by Israel, Officials Say”
– Summer Said and Robbie Gramer
PRESENTED BY AMERICA’S CREDIT UNIONS AND DCUC
CREDIT UNIONS IN ALL 50 STATES OPPOSE THE DURBIN-MARSHALL CREDIT CARD MANDATES: The Durbin-Marshall Credit Card Mandates would create harmful new routing mandates on credit cards that would put consumer data and access to credit at risk. The threat of Durbin-Marshall to small financial institutions is so clear that credit unions across America are opposed to the mandates. Our message to Congress is simple: on behalf of over 140 million credit union members across America, commit to opposing the Durbin-Marshall Credit Card Mandates. Lawmakers should stand with their local credit unions and the communities we serve.
Editorial photos provided by Getty Images. Political ads courtesy of AdImpact.
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