The 2025 federal government shutdown has entered uncharted territory.
For the first time in modern history, the Administration has announced plans to carry out Reductions in Force (RIFs) during a lapse in appropriations—actions that could violate federal law, disrupt due process, and devastate the careers of countless federal employees and contractors.

At National Security Law Firm (NSLF), we’re already advising federal workers and contractors nationwide who have received RIF notices, furlough warnings, or reduction plans tied to the shutdown. If that’s you, you’re not powerless, and time is critical.

Shutdowns and RIFs: Understanding the Basics

Historically, when the federal government shuts down, agencies classify employees into two categories:

  • Excepted Employees — Those whose duties are essential to protect life, property, or critical national security operations (e.g., law enforcement, cybersecurity, air traffic control). These employees continue to work without pay until funding resumes.

  • Non-Excepted Employees — Those not performing excepted functions. They are furloughed, prohibited from working, and placed in unpaid non-duty status during the lapse.

This framework has been the rule for decades, codified under the Antideficiency Act, which prohibits agencies from obligating funds not appropriated by Congress.

When the shutdown ends, all affected employees—both excepted and non-excepted—receive back pay under the Government Employee Fair Treatment Act of 2019 (GEFTA). Before GEFTA, back pay depended on congressional action; now, it’s automatic.

That’s how it’s always worked. Until now.

What’s Different About the 2025 Shutdown

On September 28, 2025, the Office of Personnel Management (OPM) released updated Guidance for Shutdown Furloughs. Buried deep in the document was a new provision:

Employees performing duties related to conducting RIFs are now deemed “excepted” and must continue working—even during the shutdown.

That means employees could be fired without pay during a funding lapse, and agencies could issue RIF notices while the government itself is shuttered.
This is an extraordinary break from precedent and potentially a direct violation of federal law.

The guidance also authorizes agencies to proceed with separations based on criteria that haven’t been properly reviewed or funded. In short, OPM and the Office of Management and Budget (OMB) have created a loophole that allows terminations to continue when almost all other activity is frozen.

Why These RIFs May Be Unlawful

The Administration’s new guidance rests on shaky legal ground—and several arguments suggest it’s flatly illegal.

  1. Violation of the Antideficiency Act
    The Antideficiency Act strictly forbids agencies from incurring obligations without appropriations. Conducting a RIF does not protect life or property and is not “necessary to the orderly suspension of government operations.” There is no legal basis for continuing these activities during a shutdown.

  2. Violation of the Administrative Procedure Act (APA)
    The APA prohibits “arbitrary and capricious” government action. Suddenly reclassifying RIFs as “excepted work” without statutory authority or a reasoned explanation fits that definition perfectly.

  3. Violation of the Government Employee Fair Treatment Act (GEFTA)
    GEFTA guarantees that all employees affected by a shutdown will receive pay after funding resumes. RIFs during a lapse deprive employees of that protection and violate the spirit and letter of the law.

  4. Failure to Follow Federal RIF Procedures
    Under 5 C.F.R. Part 351, RIFs must follow strict procedures: determining competitive levels, applying veteran preference, ranking employees by tenure and performance, and issuing proper notice. A mass or “blanket” RIF that skips these steps is unlawful.

  5. Abuse of Discretion / Political Targeting
    Any RIF that appears retaliatory or ideologically motivated can be challenged as an abuse of discretion. If your agency cannot articulate a clear, legitimate basis for your inclusion, the action is vulnerable to appeal.

What Federal Employees and Contractors Should Do Right Now

If you’ve received a RIF notice or been told your job may be cut during the shutdown, don’t panic—but act immediately. Here’s what to do:

  1. Do Not Resign.
    Resigning forfeits your appeal rights. Let the process unfold under counsel.

  2. Document Everything.
    Save emails, notices, internal memos, and any guidance you receive. These will be critical in proving violations of due process or the APA.

  3. Ask for the Legal Basis.
    Request in writing the authority your agency is relying on to proceed with a RIF during a shutdown.

  4. Consult an Attorney Immediately.
    You may have only a narrow window to preserve your rights under the Merit Systems Protection Board (MSPB) or federal court review.

  5. Keep Track of Your Furlough or Duty Status.
    Whether you are “excepted” or “non-excepted” determines your entitlement to pay and the legality of your agency’s actions.

Can You Challenge a Shutdown RIF?

Yes.
Federal employees have multiple avenues of recourse if they’re improperly targeted or separated during a shutdown:

  • MSPB Appeals — For career and competitive service employees subjected to RIFs without lawful process.

  • EEOC Complaints — For RIFs that appear retaliatory or discriminatory.

  • Federal Court Lawsuits — Under the Administrative Procedure Act, challenging the legality of OPM or OMB’s guidance itself.

  • Whistleblower or Union Actions — For those who raise internal concerns about the legality of shutdown RIFs and face retaliation.

How National Security Law Firm Can Help

At National Security Law Firm, we represent federal employees and contractors nationwide in cases involving RIFs, furloughs, terminations, and other adverse actions.
Our attorneys aren’t just familiar with federal employment law—they helped write, interpret, and enforce it from inside the agencies now carrying out these RIFs.

Our Federal Employment Law Division is led by former Department of Homeland Security (DHS) attorneys with unmatched insider experience. Collectively, our team brings more than 60 years of combined federal service, including decades inside TSA, CBP, and the Department of Transportation, advising on employment law, litigation strategy, and regulatory compliance.

  • Jeff Velasco spent over 25 years as a federal attorney, including more than two decades with TSA, where he supervised one of the agency’s largest employment litigation units and handled hundreds of cases before the EEOC, MSPB, and federal courts.

  • Danielle Moora, former Senior Counsel at TSA and long-time CBP attorney, earned multiple DHS Secretary’s Awards for excellence in litigation and brings extensive experience in employment discrimination, constitutional claims, and agency defense.

  • Karen Hickey, another DHS veteran, served as Senior Counsel in TSA’s Federal Courts Litigation Section and previously worked at the Federal Trade Commission and Department of Transportation, where she championed fairness and accountability in the federal workplace.

This powerhouse team knows how federal agencies think—and how to hold them accountable when they cross the line.

Here’s what sets NSLF apart:

  • Insider advantage: Our attorneys have decades of DHS, TSA, CBP, and DOT experience, giving us unparalleled insight into agency operations and decision-making.

  • Proven record: We’ve successfully challenged unlawful removals before the MSPB, EEOC, and in federal court.

  • Nationwide representation: We serve clients across all 50 states.

  • Trusted reputation: Read our 4.9-star Google reviews here.

  • Veteran-founded, battle-tested: We operate like an elite unit—disciplined, strategic, and relentless in defense of your career.

If your job is on the line during this shutdown, you need a legal team that knows the terrain, the chain of command, and the tactics the government uses.

Ready to Take the Next Step? Let’s Talk.

If you’ve received a RIF notice or been told your position may be cut during the shutdown, don’t wait. Every day that passes limits your legal options.

Book a confidential consultation online today. It’s quick, easy, and the best way to get clarity about your rights and next steps.
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