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U.S. News
29 January 2025

Trump Administration Restructures Federal Workforce Amid Layoff Offers

The new program invites federal employees to resign voluntarily with significant benefits, raising concerns over mass job losses and operational stability.

On January 28, 2025, the Trump administration unveiled its ambitious plans to dramatically restructure the federal workforce, causing ripples of uncertainty among the approximately 3 million government employees. Marked by the release of memoranda from the Office of Personnel Management (OPM), the initiative is seen as both unprecedented and potentially far-reaching.

Central to this overhaul is the introduction of buyout offers aimed at encouraging voluntary resignations from federal employees, with the deadline set for February 6, 2025. The memo, aptly titled 'Fork in the Road,' outlined various options for employees, giving them the choice to either continue their government roles or accept deferments of resignation—essentially paving the way for many to exit the workforce with significant severance benefits.

According to the OPM's email announcement, "This program begins effective January 28 and is available to all federal employees until February 6." It emphasizes the expectation for employees to revert to full-time office work, stating, "The substantial majority of federal employees who have been working remotely since Covid will be required to return to their physical offices five days a week."

Alongside these buyouts, the administration is also instituting enhanced standards of suitability and conduct for federal employees. The memo indicated those remaining will have no guarantees about their jobs and will be subject to scrutiny under the new suitability standards. Specific measures include termination if employees fail to adhere to administration policies, fostering fears of mass job losses among those deemed less 'loyal' to the Trump agenda.

Union leaders like Everett Kelley, President of the American Federation of Government Employees, have expressed alarm at the potential impact this could have, stating, "Purging the federal government of dedicated career federal employees will have vast, unintended consequences..." This sentiment echoes the broader anxiety among workers, many of whom regard the deferred resignation offer not as voluntary, but as veiled coercion to remove those viewed as noncompliant to the new administration's vision.

Adding another layer to the restructuring, OPM has initiated plans to reclassify thousands of jobs under 'Schedule F', which critics argue provides the administration increased leeway to terminate those they deem politically undesirable. Legal experts recognize the wording as broadly inclusive, stating, "It's 'broadly worded; just about anyone in the civil service could be swept up...'" commented Alan Lescht, highlighting concerns over the ambiguity of job designated classifications and protections.

The OPM's recommendation extends to almost all sectors, urging agencies to review their staff based on who is involved in "important policy-making or policy-determining functions." This classification process connects directly to the White House's aim to streamline the federal workforce, ostensibly to engender merit-based positions, but critics see it as setting the stage to convert federal roles to political appointments, circumventing the protections established under the Civil Service Act of 1978.

The new order also discards regulations established under President Biden, perceived as protective measures for federal employees. Sharon Parrott from the Center on Budget and Policy Priorities observed, "The moves will almost surely lead many expert knowledgeable career civil servants to withhold their best advice." This sentiment reflects widespread concern about public sector reliability and effectiveness as institutional knowledge exits the labor pool.

Opposition to these sweeping changes seems to be gaining traction, with several federal employee unions already preparing legal challenges to curb OPM's authority to make these classifications. The National Treasury Employees Union recently filed suit to block the initial executive order, vehemently opposed to any measures seen as stripping worker protections.

For many federal employees, the transition away from stability toward the unknown is laden with trepidation. An environment characterized by fear and uncertainty can significantly hinder the ability to deliver reliable public services. Leaders from numerous agencies are bracing for potential employee turnover and the industry-wide ramifications it may create. Could the collective exit of experienced personnel lead to chaos in pressing sectors such as healthcare, education, and security? Only time will tell.

Recent statements from Trump indicate his intention to pursue these plans with vigor, threatening even greater disruption as his administration settles in. Trump stated, "You have to go to your office and work. Otherwise, you’re not going to have a job," setting the tone for the forthcoming administration's aggressive reshaping of the federal sector.

The potential fallout remains to be fully realized and could lead to unprecedented challenges for the U.S. government's functioning. While Trump positions these aggressive moves as necessary reforms, they may very well risk alienation of thousands of skilled employees and the erosion of public trust as the administration seeks to transform government operations.