Tribal leaders warn leaked OMB memo could trigger workforce cuts during a shutdown; coalition seeks exemptions

At a Sept. 30 webinar hosted by the National Congress of American Indians, tribal leaders and former agency officials warned that a leaked Office of Management and Budget memo directs agencies to plan reductions in force that could affect federal staff serving Indian country if the government lapses into a shutdown.

Elizabeth Carr, vice president of intergovernmental affairs at Cedar Rock Alliance, said the memo "indicates that OMB has directed agencies to plan for deeper reductions in force in case of a government shutdown," a shift from prior shutdown practice that usually resulted in furloughs but not broader RIF activity.

Why it matters: Tribal programs often rely on a mix of discretionary and advanced-funded accounts. If agencies follow RIF directives and staff administering tribal programs are cut or reassigned, tribes could see delays in payments, technical assistance and program administration even when funding authorities exist.

What the memo says and why tribes are alarmed: Webinar presenters described two OMB prompts: agency lapse/contingency plans and separate RIF plans. Tyler Scribner, a former Interior budget official, explained agencies must submit contingency plans and that OMB may later request revisions. He noted longstanding budget law limits, quoting the anti‑deficiency principle: "It shall not be lawful to expend any sum in excess of appropriations made by congress or to involve the government in any contract for the future payment of money." That constraint complicates agency choices during a lapse.

Carr and Scribner highlighted the three-condition test in the memo that would make a program vulnerable to RIFs: (1) discretionary funding lapses; (2) another funding source is not available; and (3) the program or activity is not consistent with the president's priorities. "This is totally outside the norm of the typical shutdown process," Carr said, and she urged tribes to press for exemptions.

Coalition response: The Coalition for Tribal Sovereignty and NCAI circulated an action alert and, Carr said, "the letter to director Vaught and the attachment I mentioned earlier were sent this morning," requesting a directive that federal employees serving Indian country be exempted from furloughs and reduction‑in‑force actions. Webinar speakers urged tribal leaders to contact OMB and congressional delegations to make the case that trust and treaty responsibilities should protect these positions.

Legal and transparency concerns: Presenters said OMB had changed how contingency plans are published this year, posting them on individual agency sites rather than a central OMB repository, reducing transparency. Carr suggested the RIF direction could be legally contested but urged immediate advocacy given the memo's potential effect.

Next steps: Webinar hosts provided template letters and talking points and encouraged attendees to use agency budget justifications (the "green book") to identify FTEs to argue for exemption. The White House and congressional leaders were in negotiations; presenters said tribes should assume a shutdown could occur and press for protections.

The NCAI said the session recording and resource materials will be posted and that an FAQ will be produced to answer outstanding questions.