Core Points - The White House has instructed federal agencies to prepare layoff plans due to a budget impasse between the U.S. government and Congressional Democrats, indicating that the upcoming government shutdown could be unprecedented [1][2] - The Office of Management and Budget (OMB) has requested agencies to identify projects that will face funding interruptions if Congress fails to reach an agreement by September 30, with a focus on projects lacking alternative funding sources [1] - The current political divide centers around the Affordable Care Act, with Democrats wanting to maintain enhanced subsidies for low-income groups, while Republicans view these as welfare expansion [2][3] Group 1 - The OMB has not provided emergency plans for agencies, which is a departure from past practices where some federal employees were deemed "essential" and continued working during shutdowns [1] - Federal employees are experiencing widespread panic and uncertainty regarding their employment status during the potential shutdown, with many expressing feelings of fear and confusion [2] - A large-scale layoff of federal employees could have broader economic implications, potentially delaying the release of key economic data and complicating monetary policy decisions [2] Group 2 - The risk of a government shutdown is considered more severe at the current economic juncture than during periods of full economic operation [3] - As of now, Congress has not reached any consensus on fiscal appropriations for the upcoming 2026 fiscal year, which begins on October 1 [3]