GSA Reinstates Employees Amid Government Shutdown Threats

As the government shutdown continues, a notable development has emerged from the General Services Administration (GSA), which has decided to reinstate hundreds of laid-off employees. This decision comes at a time when the Trump administration is warning of potential mass layoffs among federal workers if Congress fails to resolve the shutdown, which began on October 1, 2025.

The GSA’s move to bring back employees stands in stark contrast to the administration’s threats of layoffs. During a recent press briefing, White House Press Secretary Karoline Leavitt indicated that the administration was contemplating layoffs “in the thousands” if the impasse continues. She highlighted the financial strain faced by millions of federal workers due to the shutdown, emphasizing the urgency for Congress to act.

Despite these ominous warnings, the GSA is taking proactive steps to maintain its operations. On Monday, the agency rescinded reduction-in-force notices that had previously been issued to approximately 400 employees within its Public Buildings Service (PBS). Reports suggest that around 75% of those offered reinstatement chose to return to work, allowing the GSA to manage its extensive real estate portfolio effectively.

GSA’s contingency plans reveal that over 3,000 PBS employees are expected to continue working during the shutdown, funded by carryover resources. Currently, about 64% of GSA employees are exempt from the shutdown due to their work being financed by non-appropriated funds or carryover funds, which can be utilized across fiscal years.

The GSA’s operations are crucial for the federal government, as it oversees more than 8,800 federal buildings and is responsible for maintaining and protecting these properties. The agency’s role as a property manager means that even during a shutdown, federal buildings can remain operational for employees, though they may not be accessible to the public.

While the GSA is managing to keep its workforce intact, the looming threat of layoffs from the Trump administration remains a significant concern. Unions representing federal employees have sought legal intervention to prevent any mass layoffs during this period of uncertainty. The administration’s justification for potential layoffs hinges on the need to protect federal property and ensure the safety of federal buildings, a rationale that has even led to the deployment of the National Guard in certain cities.

As the situation develops, the GSA’s ability to sustain its workforce and operations during the shutdown will be closely monitored. The agency’s actions reflect a commitment to maintaining critical functions, even as the broader federal workforce faces uncertainty. The resolution of the shutdown and the fate of federal employees now rests in the hands of Congress, with the clock ticking on their ability to reach a consensus.