IRS Layoffs Increase During Shutdown Standoff, Surpassing Expectations

The Internal Revenue Service (IRS) is set to lay off 1,400 employees, a move that has surprised many. This decision was announced on Friday, and it marks a significant reduction in the agency’s workforce. The IRS union had previously filed a lawsuit, anticipating around 1,300 layoffs across the Treasury Department, but the actual number is higher, according to an official from the Office of Management and Budget.

These layoffs come amid a government shutdown that has lasted for ten days. The shutdown is a result of ongoing disagreements between Democrats and Republicans over government funding. Democrats are demanding increased spending on various issues, including health care for non-citizens, while Republicans are hesitant to agree. As a result, many federal employees are currently not working and will likely receive back pay once a resolution is reached.

The IRS has been criticized as a bloated agency, with allegations that it has been used for political purposes, particularly in targeting conservative groups. An OMB official highlighted that the agency has spent $35 million on military-style equipment over the years. The layoffs are said to focus on redundant positions, while those involved in processing tax returns will be protected.

This reduction in staff could hinder the government’s ability to collect revenue, complicating efforts to increase spending in the future. Other departments, including Interior, Homeland Security, and Education, may also face layoffs as the impact of the shutdown continues to unfold.

Senate Majority Leader John Thune indicated that Republicans delayed layoffs for ten days in hopes of reaching a funding agreement with Senate Democrats. However, with negotiations stalled, the situation has become more urgent. In response, Senate Minority Leader Chuck Schumer stated that the decision to proceed with layoffs rests with the Trump administration and the OMB.

As the government shutdown drags on, the implications of these layoffs could be significant, affecting not just the IRS but potentially other federal agencies as well.

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  • The American Drudge Report - Always Telling the Truth

    Susan Wright has spent two decades chasing the pulse of American life from an editor’s chair that never gets cold. She’s filed columns inside packed campaign buses, fact-checked policy briefs over takeout, and wrestled late-night copy until it told the truth. Her sweet spot: connecting the dots between Capitol Hill votes, kitchen-table worries, and the cultural undercurrents most headlines miss. Readers trust her for clear facts, sharp perspective, and a reminder that democracy isn’t a spectator sport. Off deadline, Susan pushes for media transparency and smarter civics—because knowing the rules is half the game, and she’s determined to keep the playbook open to everyone.