Fact Sheet: President Donald J. Trump Works to Remake America’s Federal Workforce

Fact Sheets

TLDR

This “fact” shseet refers to an executive order which mandates federal workforce reductions through a 1:4 hiring ratio, creates a Department of Government Efficiency (DOGE) led by Elon Musk to oversee restructuring, exempts national security roles, and revives Schedule F classification. While aimed at cost savings, critics argue it risks service disruptions, increased contractor spending, and legal challenges, with potential savings of $559B-608B over a decade offset by $23B in lost revenue and pension payouts.

This “fact” sheet refers to an executive order implementing the Department of Government Efficiency (DOGE) workforce optimization initiative aims to shrink the federal workforce, limit hiring, and eliminate agency functions deemed nonessential. While framed as a cost-saving measure to enhance efficiency, the order raises significant operational, legal, and fiscal concerns.

Key Provisions of the Executive Order

  1. Workforce Reduction Mandates:

    • Agencies must hire no more than one employee for every four departing workers (exempting national security, law enforcement, and immigration roles).
    • Requires large-scale reductions in force (RIFs) and elimination of agencies/components not “required by law”.

  2. Centralized Control via DOGE:

    • Agency heads must coordinate hiring and layoff plans with DOGE, led by Elon Musk, who has no prior federal management experience.
    • DOGE’s authority includes approving “essential positions” and restructuring agency functions.

  3. Regulatory Changes:

    • The Office of Personnel Management (OPM) will create stricter conduct rules for federal employees.
    • Follows earlier orders reinstating Schedule F, which strips civil service protections for policy-related roles.

  4. Exemptions:

    • Personnel in national security, public safety, and immigration enforcement are exempted—though reports indicate some exempted roles (e.g., TSA, FAA) faced hiring freezes.

Analysis

Efficiency Claims vs. Operational Realities

  • Contractor Dependency: Past workforce cuts under Trump led to increased reliance on contractors, raising costs and accountability issues. For example, federal contractor spending grew by $2 trillion during Trump’s first term despite workforce reductions.
  • Service Disruptions: Cutting 25% of staff via the 1:4 hiring ratio risks crippling agencies like the IRS (tax processing) and Social Security Administration (benefits delays).
  • Federal Workforce Size: While the EO claims “too many federal employees,” the workforce has remained stable at ~2.1M since the 1960s despite a U.S. population doubling.

Legal and Constitutional Challenges

  • Courts Block Key Measures: A federal judge paused Trump’s “deferred resignation” buyout program (65,000+ applicants) after unions sued, citing violations of civil service protections.
  • DOGE’s Authority: Lawsuits allege Musk’s access to Treasury payment systems and taxpayer data violates privacy laws. Critics argue DOGE operates without congressional oversight.

Fiscal Impact Overstated

  • Savings vs. Costs: A 10% workforce cut (240,000 jobs) would save $559B–$608B over a decade but reduce federal revenue by $23B due to lost income taxes and harm local economies reliant on federal jobs.
  • Pension Liabilities: While trimming future pension costs, mass layoffs trigger immediate payouts. For example, buyouts offering 8 months’ salary cost $100B if 200,000 workers resign.

Contradictions in Exemptions

  • Despite exemptions, hiring freezes impacted roles in aviation safety (FAA) and disaster response (FEMA) during Trump’s first term, contributing to operational failures.

Historical Context and Precedents

  • Schedule F Revival: Reclassifying policy roles as political appointees risks a patronage system, undermining merit-based civil service.
  • Past Failures: Trump’s 2017 hiring freeze increased contractor spending by 14% and delayed key services like veterans’ healthcare.

The order prioritizes ideological goals over pragmatic governance, risking destabilization of essential services, legal entanglements, and long-term cost escalations. While streamlining bureaucracy is a valid aim, DOGE’s lack of transparency, Musk’s conflicts of interest, and aggressive layoff targets undermine its credibility. Historical data and fiscal analyses suggest the plan may exacerbate inefficiencies rather than resolve them.

REFORMING THE FEDERAL WORKFORCE TO BETTER SERVE AMERICANS:

Today, President Donald J. Trump signed an Executive Order implementing the President’s Department of Government Efficiency (DOGE) workforce optimization initiative.

  • The Executive Order will make the federal workforce more efficient and effective.

    • Agency Heads will coordinate and consult with DOGE to shrink the size of the federal workforce and limit hiring to essential positions.

    • The Office of Personnel Management will initiate a rulemaking to ensure federal employees are held to the highest standards of conduct.

  • The Order will significantly reduce the size of government.

    • Upon expiration of the Day 1 hiring freeze and implementation of the hiring plan, agencies will be able to hire no more than one employee for every four employees that depart from federal service (with appropriate immigration, law enforcement, and public safety exceptions).

    • Agencies will undertake plans for large-scale reductions in force and determine which agency components (or agencies themselves) may be eliminated or combined because their functions aren’t required by law.

  • The Order exempts personnel and functions critical to national security, public safety, law enforcement, and immigration enforcement.

REDUCING THE UNNECESSARY FOOTPRINT OF GOVERNMENT: President Donald J. Trump is committed to reducing the size and scope of the federal government.

  • There are too many federal employees.

    • Excluding active-duty military and Postal Service employees, the federal workforce exceeds 2.4 million.

    • No one knows exactly how many federal agencies exist, but the Federal Register lists over 400.

  • The federal workforce contributes significantly to federal spending and debt.

    • In fiscal year 2022, the federal government spent nearly $300 billion on compensation for civilian employees, excluding pensions.

    • According to a recent congressional report, only 6% of federal workers report to work in-person on a full-time basis.

BUILDING ON PAST SUCCESS: President Trump has made reforming the federal workforce a key priority for his second term.

  • President Trump has consistently worked to shrink the administrative state.
  • His first term spurred robust economic growth and innovation through regulatory reform.
  • Workforce reform in his second term will build on these successes.