Source: Fox News
Summary
The Trump administration reduced the federal workforce to its lowest level in about 60 years, with 2.67 million employees as of August, down from 3 million when he took office. The cuts, which began in 2024, have led to savings but also reduced agency capacity, including a 35% drop in IRS revenue. Some agencies, like the Department of Homeland Security, saw fewer reductions. The administration’s workforce cuts were part of a campaign promise to reduce government size. The Office of Personnel Management reported $500 million in fraud and waste in health benefits programs.
Our Reading
As expected, the matter has reached another stage.
Employees leave. Numbers drop. Savings rise. Revenue falls.
IRS loses staff. Examinations drop. Money dries up.
Some agencies shrink. Others stay the same.
The numbers tell a story. The story is about who counts.
Author: Evan Null
Trump’s Workforce Cuts
The Trump administration reduced the federal workforce to its lowest level in 60 years, according to data from the Bureau of Labor Statistics. The number of federal employees dropped from 3 million to 2.67 million. This reduction was part of a broader effort to shrink government size, as outlined in the administration’s campaign promises.
The cuts affected various agencies, with some, like the Department of Homeland Security, remaining largely unchanged. Others, such as the Department of Education and the Department of Agriculture, saw significant reductions. The Office of Personnel Management played a key role in implementing these changes.
The reductions led to cost savings, with the Deferred Resignation Program alone expected to save over $20 billion annually. However, the cuts also had negative consequences, including a 35% drop in IRS revenue from fiscal 2024 to 2025. This decline was attributed to reduced staffing in examination and collection roles.
The Trump administration also proposed further cuts to the IRS for 2027. These cuts were part of a broader strategy to reduce the size of the federal government, which was a key campaign promise during the 2024 election.
Despite the reductions, the Trump administration spent 3% more on federal salaries in its first year than the Biden administration did in its first year. This highlights the complex relationship between workforce size and spending.
Federal Workforce Data
The Bureau of Labor Statistics reported that the federal workforce reached its lowest point in about 60 years under the Trump administration. As of August, there were 2.67 million federal employees, down from 3 million when the administration took office. This decline marks the lowest headcount since 1966, according to the BLS.
The reductions were part of a larger effort to reduce the size of the federal government, as outlined by the Department of Government Efficiency and the Office of Personnel Management. These agencies were responsible for implementing the workforce cuts, which were a major campaign promise during the 2024 election.
The impact of the cuts varied across agencies. The Department of Homeland Security, which was responsible for carrying out much of the administration’s immigration agenda, saw fewer reductions compared to other departments. The Department of Education, the Department of Agriculture, and the Department of Housing and Urban Development were among the hardest hit.
The cuts also had financial consequences. The IRS experienced a 35% drop in revenue from fiscal 2024 to 2025, as the agency underwent significant workforce reductions. This decline was attributed to the loss of nearly 10,000 employees in examination and collection roles.
The Office of Personnel Management reported that agencies spent about $6.7 billion on the Deferred Resignation Program, which allowed employees to stop working while still collecting a paycheck. This program was part of the broader strategy to reduce the size of the federal workforce.
IRS and Workforce Reductions
The IRS faced significant challenges due to the workforce reductions under the Trump administration. The agency experienced a 35% drop in revenue from fiscal 2024 to 2025, as it underwent steep reductions in staffing for examinations and collections. This decline was attributed to the loss of nearly 10,000 employees in these roles.
The cuts had a direct impact on the agency’s ability to collect taxes and conduct audits. The reduced workforce led to a decrease in the number of IRS examinations, which in turn affected the amount of revenue collected. This decline in revenue was a major consequence of the workforce reductions.
The Trump administration had previously proposed further cuts to the IRS for 2027, which would have further reduced the agency’s capacity. These proposals were part of a broader effort to reduce the size of the federal government, as outlined in the administration’s campaign promises.
The IRS was also affected by the Deferred Resignation Program, which allowed employees to stop working while still receiving a paycheck. The program was part of the broader strategy to reduce the size of the federal workforce, and it led to significant spending by the government.
Despite the reductions, the Trump administration spent 3% more on federal salaries in its first year than the Biden administration did in its first year. This highlights the complex relationship between workforce size and spending, and the challenges of implementing large-scale reductions.
Political Promises and Financial Consequences
The Trump administration made a major campaign promise to reduce the size of the federal government, which led to significant workforce reductions. These cuts were implemented through the Department of Government Efficiency and the Office of Personnel Management, which were responsible for overseeing the changes.
The reductions had both financial and operational consequences. While the cuts were expected to lead to significant savings, they also resulted in reduced agency capacity, including a 35% drop in IRS revenue. This decline was attributed to the loss of nearly 10,000 employees in examination and collection roles.
The administration also proposed further cuts to the IRS for 2027, which would have further reduced the agency’s capacity. These proposals were part of a broader strategy to reduce the size of the federal government, as outlined in the administration’s campaign promises.
The Office of Personnel Management reported that agencies spent about $6.7 billion on the Deferred Resignation Program, which allowed employees to stop working while still receiving a paycheck. This program was part of the broader strategy to reduce the size of the federal workforce, and it led to significant spending by the government.
Despite the reductions, the Trump administration spent 3% more on federal salaries in its first year than the Biden administration did in its first year. This highlights the complex relationship between workforce size and spending, and the challenges of implementing large-scale reductions.
Future Implications and Promises
If Republicans win the midterm elections, the Trump administration has promised to issue $5,000 checks to all adult American citizens. This long-shot promise, if followed through, would cost the nation between $1.2 trillion and $1.35 trillion. This proposal has been met with skepticism, as it is seen as another unfulfilled promise from the administration.
The administration’s workforce reductions were part of a broader effort to shrink the federal government, which was a key campaign promise during the 2024 election. This strategy was implemented through the Department of Government Efficiency and the Office of Personnel Management, which were responsible for overseeing the changes.
The impact of the cuts varied across agencies, with some, like the Department of Homeland Security, remaining largely unchanged. Others, such as the Department of Education and the Department of Agriculture, saw significant reductions. The Office of Personnel Management reported that agencies spent about $6.7 billion on the Deferred Resignation Program, which allowed employees to stop working while still receiving a paycheck.
The IRS faced significant challenges due to the workforce reductions, with a 35% drop in revenue from fiscal 2024 to 2025. This decline was attributed to the loss of nearly 10,000 employees in examination and collection roles. The administration also proposed further cuts to the IRS for 2027, which would have further reduced the agency’s capacity.
The Trump administration’s approach to reducing the federal workforce highlights the complex relationship between government size, spending, and operational capacity. While the cuts were intended to lead to savings, they also had unintended consequences, including reduced agency effectiveness and increased costs in some areas.
