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By Natalie Venegas and Gabe Whisnant
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Federal agencies must develop plans to eliminate employee positions under a directive from President Donald Trump's administration, setting the stage for a major restructuring of the federal government.
Why It Matters
The memo expands Trump's push to shrink the federal workforce, which he has called bloated and an obstacle to his agenda. Thousands of probationary employees have already been dismissed, and now the administration is focusing on career officials with civil service protections.
Read More on Politics
It follows an executive order he signed alongside billionaire Elon Musk, who leads the Department of Government Efficiency (DOGE), a task force aimed at reducing government costs and the federal workforce. In its first month of operation, it has restructured multiple federal agencies and recommended mass layoffs, sparking backlash and concern from Trump critics and some Republicans.
Musk has called for sweeping cuts to federal government spending, claiming it should be reduced by up to $2 trillion annually. Supporters say this will boost efficiency and help tackle the national debt, while critics argue it will reduce access to government services.
What To Know
Agencies must submit reduction in force plans by March 13, which would not only lay off employees but permanently eliminate their positions—potentially leading to significant changes in government operations.
"The federal government is costly, inefficient, and deeply in debt," wrote Russell Vought, the White House Office of Management and Budget director. "At the same time, it is not producing results for the American public."
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At the heart of the directive agencies are tasked with crafting plans that ensure "better service" for Americans, "increased productivity," a "reduced real property footprint," and a "reduced budget," the memo states.
To achieve these goals, the White House is calling on agencies to streamline operations by consolidating "duplicative" functions and eliminating "unnecessary layers" of management. The memo also highlights the importance of modernizing federal operations, urging departments to leverage technology to "automate routine tasks" and free up staff to "focus on higher-value activities."
This comes after Trump signed an executive order directing agency leaders to "promptly undertake preparations to initiate large-scale reductions in force," marking an escalation in Trump's second-term push for government efficiency as some agencies are already seeing the impact.
The General Services Administration, which oversees federal real estate, informed employees this week that a reduction in force was underway. Officials assured affected workers they would "do everything in our power to make your departure fair and dignified."
Meanwhile, the memo comes as Trump is set to discuss the restructuring effort in his first Cabinet meeting of his second term, which will notably include Musk.
White House press secretary Karoline Leavitt said all Cabinet secretaries are taking guidance from DOGE.
**"**They'll be providing updates on their efforts, and they'll also be providing updates on what they're doing at their agencies in terms of policies and implementing the promises that the president made on the campaign trail," Leavitt said.
However, Musk's involvement has continued to spark concerns within the federal workforce, particularly after he pushed employees to justify their positions or risk termination—an initiative that the Office of Personnel Management later clarified was "voluntary."
Concerns ran particularly deep at agencies performing sensitive and often classified work. The Pentagon, Justice Department, FBI, Department of Energy, Department of Health and Human Services and the Social Security Administration all instructed employees to disregard the email or said ignoring it would not result in termination.
What People Are Saying
The memo states: "The federal government is costly, inefficient, and deeply in debt. At the same time, it is not producing results for the American public. Instead, tax dollars are being siphoned off to fund unproductive and unnecessary programs that benefit radical interest groups while hurting hard-working American citizens. The American people registered their verdict on the bloated, corrupt federal bureaucracy on November 5, 2024 by voting for President Trump and his promises to sweepingly reform the federal government."
Steve Gutierrez, with the National Federation of Federal Workers, told NBC News last week: "These folks aren't the swamp. They aren't bureaucrats. They feel like the government doesn't have their backs."
What Happens Next
The administration's sweeping reorganization could face resistance from federal employee unions and Democrats in Congress, who have previously fought efforts to weaken civil service protections.
Meanwhile, cuts to federal government spending are expected to continue and will need to expand substantially if Musk is to reduce expenditure by anything close to $2 trillion annually.
This article includes reporting by The Associated Press.
Update 2/26/25, 12:31 p.m. ET: This article was updated with additional information.
Update 2/26/25, 1:01 p.m. ET: This article was updated with additional information.
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