Government layoffs paused by judge 

After a slew of over 4,000 layoff notices were sent to employees across several federal agencies, a federal judge has paused the latest Reduction in Force (RIF) effort spearheaded by Office of Management and Budget (OMB) Director Russell Vought in response to the lapse in federal government funding. The attempted RIF has been met with concern from Democrats and Republicans alike as the government shutdown enters its third week, despite little movement on policy and funding compromises from either party. Senate Republicans attempted to advance a defense-only appropriations bill, which did not include any of the policy asks of Democrats, and failed to garner Democratic support this week. 

“I strongly oppose OMB Director Russ Vought’s attempt to permanently lay off federal workers who have been furloughed due to a completely unnecessary government shutdown caused by Senator Schumer,” said Senator Susan Collins (R-Maine), chair of the Senate appropriations committee in a press release. “Regardless of whether federal employees have been working without pay or have been furloughed, their work is incredibly important to serving the public. Arbitrary layoffs result in a lack of sufficient personnel needed to conduct the mission of the agency and to deliver essential programs, and cause harm to families in Maine and throughout our country.” 

“No one is making Trump and Vought hurt American workers—they just want to. A shutdown does not give Trump or Vought new, special powers to cause more chaos or permanently weaken more basic services for the American people, and the simple fact is this administration has been recklessly firing—and rehiring—essential workers all year,” said a press release from U.S. Senator Patty Murray (D-Wash.), Vice Chair of the Senate Appropriations Committee. “Republican leadership shut down the government because they refuse to even sit down and talk with Democrats about how we keep the government funded and keep health care premiums from more than doubling next year. The way we reopen government is compromise, a simple concept every American understands—and no amount of threats will change that. It’s past time President Trump and Republicans get serious about a solution to reopen the government and address exploding health care costs—and join us at the negotiating table.” 

The decision came from U.S. District Judge Susan Illston in San Francisco, responding to a suit brought by the American Federation of Government Employees and the American Federation of State, County and Municipal Employees. The two groups represent a collective 800,000 government workers. 

Stakeholders and Members of Congress defend CDFI Fund 

Housing and community development groups are rallying across bipartisan lines to defend the Community Development Financial Institutions (CDFI) Fund once again after the entire staff received layoff notices which said the firings were necessary to align with the President’s agenda, including the termination of the CDFI Fund.  

The fund already came under scrutiny earlier this year as a potential funding cut, which also prompted broad bipartisan pushback with many outlets noting that the program generates $8 in private investment per each dollar provided through the fund. Treasury Secretary Scott Bessent has gone on record himself supporting the CDFI Fund.  

Senate Community Development Finance Caucus co-chair Mike Crapo (R-Idaho) expressed discouragement of the latest decision, and Senator Mike Rounds (R-S.D.) further said that he remains fully supportive of the fund and noted he has seen firsthand in his state the excellent job that the fund does. His co-chair Mark Warner (D-Va.) stated that they would work together to “show strong, bipartisan pushback.” 

Senators Elizabeth Warren (D-Mass.) and Ron Wyden (D-Ore.), each ranking members of relevant committees, sent a letter to Secretary Bessent requesting further information on how the RIFs will impact the statutory mandates of Treasury, including specifically citing the CDFI Fund. The layoffs are currently scheduled to take effect in December. 

“The Administration’s actions announced on Friday are deeply disappointing and risk undoing decades of progress in Native community and economic development. My foremost concern is for the Native communities we serve and the disruption this could cause... We have until December 13th to get to work — this is the time for Native CDFIs and Native organizations to stand together, stay focused, and fight for the future of our communities," said Pete Upton, CEO of Native CDFI Network. 

Among the broader reorganization concerns is the future of the Consumer Financial Protection Bureau (CFPB). The Office of Management and Budget Director Russel Vought revealed on a recent podcast that he still intends to shut down the CFPB, though his authority to do so without Congressional action is unclear and continues to play out in court. The Administration has argued in court that it has no plan to dismantle the consumer watchdog in ongoing litigation with the CFPB’s labor union and consumer advocates. The CFPB’s functionality was shut down earlier this year, and 90% of their staff were fired in April. In the same interview, Vought stated he expects to close the agency within a few months.  

FHFA seeks comments on strategic plan 

The Federal Housing Finance Agency (FHFA) released its FY 2026-2030 strategic plan and is soliciting comments from stakeholders. This request for input comes after FHFA published off-cycle draft affordable housing goals for 2026-2028 earlier this month. The new plan has three broad goals for FHFA: Responsibly oversee Fannie Mae and Freddie Mac for the American people; supervise the Federal Home Loan Bank System; and efficiently manage operations. Each goal provides a series of subgoals, including specific callouts of support for the Low-Income Housing Tax Credit investment market and encouragement of Fannie Mae and Freddie Mac to “explore opportunities to address the national housing supply crisis.”  

The 2022-2026 plan also focused on three goals: Securing the regulated entities’ safety and soundness; fostering housing finance markets that promote equitable access to affordable and sustainable housing; and responsibly stewarding FHFA’s infrastructure.  

The new strategic plan represents a clear shift away from previous language from FHFA focused on inclusivity, affordability, and sustainability to an approach more aligned with the current Administration’s goals. It centers on fraud prevention, operational standards, compliance with executive orders, and reducing regulatory burden.  

Comments are due by November 5.