President Donald Trump administration is preparing for a potential government shutdown that could lead to thousands of federal employees being laid off and significant changes in the functioning of various departments.

According to reports, if Congress fails to fund the government next week, the Labor Department could cease most activities and lay off thousands of employees.

National parks would close, and their staffs could face layoffs. The Internal Revenue Service’s phone help lines might go unstaffed, possibly permanently.

Under the shutdown plan, led by White House budget director Russell Vought, only agencies that received funding in Trump’s One Big Beautiful Bill would continue to operate. The Defense and Homeland Security departments were the main beneficiaries of this bill, reports Washington Post.

“They want a smaller government. They would like to get back to a balanced budget. … They think that many government programs are inefficient or actually destructive, and they are prepared to aggressively pursue every opportunity that the left gives them to reshape the government,” the outlet quoted Newt Gingrich, the former House speaker and periodic Trump adviser saying.

Also Read: Prediction Markets Put 66% Odds on US Government Shutdown, Raising Alarms for Businesses and Investors

Despite the looming shutdown, many Republicans, including officials from the Office of Management and Budget, believe the cuts are avoidable.

The GOP-controlled House passed a funding patch free of partisan policy riders earlier in September. Democrats in the Senate say they won’t consider a federal financing bill that does not include renewed subsidies for health insurance programs.

In its May budget proposal, the Trump administration outlined sweeping funding reductions across several federal agencies.

The plan sought to slash the State Department's budget by nearly 84%, cut more than 43% from Housing and Urban Development, and reduce the Labor Department's allocation by about 35%.

At the same time, the White House requested a 65% boost in funding for the Department of Homeland Security.

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