Federal Workforce Shrinks to 60-Year Low Under Trump Administration

The federal workforce has been reduced to its lowest point in approximately 60 years, according to recent data from the Bureau of Labor Statistics. As of August, the federal government employed 2.67 million people, a decrease from just over 3 million when President Donald Trump took office.

The administration has projected substantial savings from these workforce reductions, with the Office of Personnel Management (OPM) estimating that its Deferred Resignation Program alone could save more than $20 billion annually. However, these cuts have also incurred costs. A Treasury Department watchdog reported that revenue from IRS examinations fell by 35%, from approximately $10 billion in fiscal year 2024 to $6.5 billion in fiscal year 2025, following a reduction of nearly 10,000 employees in examination and collection staffing.

This reduction occurred despite former President Joe Biden securing nearly $80 billion over 10 years in 2022 for the IRS to modernize its systems, enhance taxpayer services, and increase staffing, including enforcement personnel. The Trump administration has proposed further cuts to the IRS for fiscal year 2027.

The impact of the administration's workforce reductions has not been uniform across all agencies. Departments such as Education, Agriculture, and Housing and Urban Development have experienced significant cuts. In contrast, the Department of Homeland Security, which has been central to implementing the administration's immigration policies, has seen its headcount remain largely unchanged.

The Bureau of Labor Statistics count excludes approximately 1.35 million members of the armed services and about 100,000 employees in intelligence agencies. Cutting the federal workforce was a significant campaign promise for Trump, who vowed to reduce the size of the government.

Data from the Government Accountability Office (GAO) indicated that agencies spent around $6.7 billion on employees participating in the Deferred Resignation Program, which allowed some to continue receiving paychecks while awaiting official departure. The Partnership for Public Service estimated that the government spent $12.1 million on rehiring employees who had been previously terminated during the administration's workforce reduction efforts.

Despite these reductions, the Trump administration's spending on federal salaries in its first year exceeded that of the Biden administration during its initial year by 3%. If Republicans secure a majority in the midterm elections, the president has pledged to issue $5,000 checks to all adult American citizens, a proposal estimated to cost between $1.2 trillion and $1.35 trillion.