Next Wave Of Federal Layoffs- What to Expect From Trump’s Plan

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Next Wave Of Federal Layoffs- What to Expect From Trump’s Plan

The Trump administration has initiated significant federal workforce reductions across various agencies, aiming to streamline government operations and reduce spending. Here’s an overview of the recent and upcoming layoffs:

  1. Department of Education

Nearly 50% of the Department’s workforce, approximately 1,300 employees, have been laid off. This move aligns with President Trump’s proposal to transfer federal student loan responsibilities to other agencies, potentially disrupting financial aid and loan assistance for students and educators. 

  1. Internal Revenue Service (IRS)

The IRS plans to reduce its workforce by 50% through layoffs, attrition, and incentivized retirements. This decision follows internal disagreements over data-sharing policies and aims to enhance efficiency within the agency. 

  1. Consumer Financial Protection Bureau (CFPB)

The administration’s efforts to dismantle the CFPB have faced legal challenges. A federal judge is expected to block mass layoffs intended to render the agency ineffective, emphasizing the importance of the CFPB in handling consumer complaints and protecting financial consumers. 

  1. Broader Federal Workforce

As of late February 2025, over 30,000 federal employees have been terminated. The administration’s strategy includes reclassifying positions to at-will status, eliminating diversity, equity, and inclusion (DEI) initiatives, and targeting recent hires on probation. These actions have raised legal and ethical concerns regarding their unprecedented nature and potential violation of federal laws. 

  1. Legal Challenges

A coalition of 20 states has sued the administration over plans to eliminate nearly half of the Department of Education’s staff, arguing that such actions are unconstitutional and detrimental to educational programs nationwide. 

  1. Potential Government Shutdown

Senate Democrats, led by Chuck Schumer, oppose a Republican-drafted funding bill proposing significant budget cuts to essential services, increasing the risk of a government shutdown. The bill favors defense spending while reducing non-defense budgets, leading to partisan tensions. 

  1. Looking Ahead

The administration’s Department of Government Efficiency (DOGE), led by Elon Musk, is expected to continue implementing mass layoffs and restructuring efforts across federal agencies. Employees in roles associated with DEI initiatives or recent hires are particularly vulnerable. These measures aim to reduce government size but have sparked debates about their impact on public services and legal compliance.

Federal employees and stakeholders should prepare for ongoing changes and potential legal developments affecting various sectors of the government.

Sources:

  1. People
  2. com
  3. com
  4. Wikipedia
  5. com
  6. com
  7. Wikipedia

Will Federal Retirement Benefits Be Affected During Government Downsizing? 

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Will Federal Retirement Benefits Be Affected During Government Downsizing? 

During periods of government downsizing, federal retirement benefits, such as those under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS), are generally safeguarded. These benefits are funded through dedicated trust funds, ensuring that current retirees continue to receive their annuities without interruption.

However, recent developments have raised concerns about the administration of these benefits. The Department of Government Efficiency (DOGE), led by Elon Musk, has implemented significant budget cuts across various federal agencies, including the Social Security Administration (SSA). These measures aim to reduce federal spending but have resulted in substantial workforce reductions and office closures. For instance, the SSA plans to eliminate 7,000 jobs and close six out of ten regional offices, potentially affecting nearly 69 million beneficiaries.

Such reductions could lead to longer wait times and processing delays for both current and prospective retirees. The SSA, already facing challenges in customer service, may struggle to maintain efficiency with a diminished workforce. This situation could particularly impact the processing of disability benefit applications, leading to extended delays.

While the benefits themselves remain secure, the administrative challenges posed by these budget cuts may affect the timely delivery and processing of benefits. Current and future retirees should be aware of potential delays and plan accordingly, especially when applying for benefits or addressing issues related to their retirement plans.

It’s also important to note that while these administrative changes are significant, they do not alter the fundamental structure or funding of federal retirement benefits. However, the reduced capacity of agencies like the SSA to manage and distribute these benefits efficiently could pose challenges for beneficiaries.

In summary, although federal retirement benefits are not directly reduced during government downsizing, the associated administrative changes can lead to indirect effects such as processing delays and reduced customer service. Staying informed about these developments and planning accordingly can help mitigate potential inconveniences.

Sources:

thetelegraph.com

Axios

 

AssetMark CIO Video: Stay Above the Noise

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The Trump administration has implemented numerous executive orders, imposed tariffs, and has implemented mass layoffs of federal employees. This causes uncertainty and government job cuts could dampen consumer confidence and spending.  What does that mean for the long-term? Please click on link to listen to a brief video from ASSSETMARK CIO, Christian Chan.

2-Minute CIO Update: Stay Above the Noise (March 2025)

Social Security Administration Announces Staff Downsizing Plans

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Social Security Administration Announces Staff Downsizing Plans

The Social Security Administration announced Friday its plan to cut at least 7,000 employees from the agency and to close multiple regional offices to comply with recent executive orders from President Donald Trump.

The SSA recently set a staffing target of 50,000, down from its current level of approximately 57,000 employees, according to the announcement. The SSA clarified that rumors of a 50% reduction are false. Follow link to read more from Plan Advisor. https://www.planadviser.com/social-security-administration-announces-staff-downsizing-plans/

 

What is the Current Status of Trump’s ‘Buyout’ Plan?

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What is the Current Status of Trump’s ‘Buyout’ Plan? 

President Trump’s initiative to downsize the federal workforce through buyout offers has encountered significant challenges, leading to unintended consequences. The administration proposed that federal employees resign by February 6, 2025, in exchange for full pay and benefits through September 30, aiming to reduce government spending and streamline operations. brookings.edu

However, this plan has faced legal obstacles. On February 6, a U.S. District Judge temporarily blocked the administration’s buyout program, citing concerns about its legality and the potential for irreparable harm to federal operations. reuters.com

This injunction was later lifted on February 13, allowing the program to proceed, but not without ongoing controversy. forbes.com

Additionally, the buyout offer has reportedly backfired in some respects. Instead of encouraging resignations, the ultimatum has galvanized many federal workers to remain in their positions out of principle, resisting what they perceive as an unjust push to leave. newrepublic.com

Furthermore, labor unions have filed lawsuits against the administration, fearing mass firings of employees who do not accept the buyout offers, arguing that such actions undermine congressional authority over the federal workforce. reuters.com

As of now, the future of the buyout program remains uncertain, with legal battles and employee resistance posing significant hurdles to its implementation.