Federal employees are once again bracing for major changes as President Donald Trump lays out plans to eliminate over 100,000 federal jobs next fiscal year.
A new report confirms the proposed cuts would target specific agencies and roles, signaling that many of the same policy shifts introduced during his previous term are far from over.
Federal workers could face another round of buyouts, reorganizations, and benefit changes that could seriously impact job security and income.
Whether you're planning retirement or your next career move, it's worth reviewing how Trump's earlier changes could resurface, and what that could mean for your financial future.
Here are seven federal workforce shifts that are still very much in play.
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Workers may have to return to offices
Trump has ordered federal employees to return to the office full time, marking a stark reversal of the remote and hybrid work arrangements that gained traction in recent years.
The return-to-office mandate leaves little room for flexibility, and some have speculated that it could prompt many employees to reconsider their roles in government altogether.
Job protections are being weakened
Federal job protections are undergoing a significant overhaul, leaving employees more vulnerable to termination.
This includes rolling back policies that shield workers from ideological job purges and stripping civil service protections.
Diversity offices are being shuttered
The administration is shutting down diversity, equity, and inclusion (DEI) offices across federal agencies, citing a focus on reducing bureaucracy.
These offices were created to promote workplace inclusivity and ensure equitable opportunities for underrepresented groups. All federal DEI office staffers have been placed on paid leave.
- 18-29
- 30-39
- 40-49
- 50-59
- 60-69
- 70-79
- 80+
Hiring is being frozen
Trump has announced a temporary federal hiring freeze, halting new job opportunities across agencies.
The freeze is intended to reduce government spending and to "ensure that we're only hiring competent people who are faithful to the American public," Trump said.
The hiring ban does not apply to the following areas of the federal government:
- Military
- Immigration enforcement
- National security
- Public safety
Many workers could be fired
Reuters reports that the Trump administration is reclassifying the job status of federal job workers. This could make it easier to fire the workers.
Don Moynihan, a professor at the Ford School of Public Policy at the University of Michigan, told Reuters that this could potentially result in hundreds of thousands of layoffs.
The ability to issue new regulations has been halted
The administration has put a halt to the issuance of new regulations.
This restriction is part of a broader effort to limit the federal government's reach, with Trump saying the goal of the freeze is to "stop (former President Joe) Biden bureaucrats from continuing to regulate."
Many jobs might disappear
Trump's push for sweeping government cuts includes the elimination of certain agencies and programs deemed unnecessary.
The president has announced the creation of an advisory group, the Department of Government Efficiency (DOGE), that aims to streamline government operations while also cutting spending.
In an announcement, the White House said a top aim of DOGE is "modernizing Federal technology and software to maximize governmental efficiency and productivity."
Bottom line
The federal workforce is undergoing a potentially seismic transformation under Trump's leadership, with changes that could reshape careers and livelihoods.
Whether it's returning to the office, facing weaker job protections, or navigating hiring freezes, federal employees must adapt to these new realities.
Understanding these changes can help you assess your financial fitness and determine what steps you need to take now to safeguard your career and income.
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