Shutdown Enters Third Week as More Than 4,000 Federal Workers Face Layoffs, Telehealth Services Disrupted

WASHINGTON, Oct. 14, 2025 – As the federal government shutdown reaches its 14th day, more than 4,000 federal workers are expected to be laid off across multiple agencies, and healthcare groups warn of growing disruptions to telehealth services nationwide.

According to reports, the Trump administration planned to eliminate roughly 4,100 positions from seven federal departments. The layoffs, referred to as reductions-in-force (RIFs), were outlined in a memo issued nearly two weeks ago by Office of Management and Budget Director Russ Vought.

The Department of Health and Human Services will see the largest cuts, with between 1,100 and 1,200 employees expected to lose their jobs. The Commerce Department will shed about 315 workers, while the Federal Communications Commission has not yet announced any layoffs. Other agencies are still weighing additional reductions.

“It is disgraceful that the Trump administration has used the government shutdown as an excuse to illegally fire thousands of workers who provide critical services to communities across the country,” said Everett Kelley, president of the American Federation of Government Employees. “Federal workers are tired of being used as pawns for the political and personal gains of the elected and unelected leaders.”

According to Roll Call, the administration said the layoffs were justified under federal guidelines allowing terminations due to “lack of work, shortage of funds, or reorganization.”

Meanwhile, the American Telemedicine Association’s advocacy arm (ATA Action) urged Congress and the Administration to pass a short-term fix to restore Medicare telehealth flexibilities and the Acute Hospital Care at Home Program, both of which expired during the shutdown.

ATA Action leaders warned that the lapse is disrupting patient care, especially in rural and underserved communities that depend on virtual services for access to specialists and behavioral health providers.

Some hospitals continue to offer telehealth visits for Medicare patients at financial risk, hoping for retroactive reimbursement once the shutdown ends. ATA officials praised private insurers maintaining telehealth coverage but cautioned that instability threatens millions of patients and the broader healthcare system.

"Trump’s policies are devastating health care in rural communities. And now, Republicans have shut down the government instead of fixing the health care crisis they’ve created.” posted Senate Minority Leader Chuck Schumer, D-N.Y. on X.

With mounting layoffs and disruptions to federal programs, the shutdown has deepened partisan divides.

“They’ve taken government funding hostage in an attempt to force through their partisan measures,” said Sen. John Thune, R-S.D., as Republican leaders continued to accuse Democrats of prolonging the crisis.