Federal workers, government contractors, and those seeking federal employment are concerned about the new administration’s efforts to streamline government. Elon Musk and Vivek Ramaswamy will lead the White House’s new Department of Government Efficiency (DOGE).
These two individuals, according to President Trump, “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
Employment Stats
The Office of Personnel Management reported civilian executive branch federal employment in 2004 was 1,882,000 compared to today’s 2,261,016, a 17% increase. Employment has increased 8% over the past 10 years.
This doesn’t count the postal service, the legislative and judicial branches of government, or the military. In 2023, 25% of all employment gains from all sources were attributed to government positions, resulting in a significant reliance on public-sector employment to sustain economic growth.
According to the Department of Labor, State government employment rose by 273,000 in 2023, the most significant calendar-year percentage gain in employment since 1968. The federal government added 85,000 jobs over the year.
The Reorganization Shuffle
Even though many agencies may potentially be trimmed, some shuttered, and others disseminated around the country, many jobs will survive. Lucrative opportunities will exist for those willing to be flexible and seek them out.
During my 36-year military and federal career, I experienced numerous reorganizations. Three years after enlisting in the Air Force, my unit, the 1st Aerospace Cartographic and Geodetic Service, was mothballed, and I was put on notice for redeployment overseas.
Concurrently, as the Vietnam War ended, the Air Force was building up its reserve components. Displaced military personnel were offered early outs and federal civilian positions under the Palace Chase program if they enlisted in and accepted a civilian job with an Air National Guard unit.
Reorganizations Create Opportunities
I interviewed and was selected for an avionics technician position with the Air National Guard (ANG) unit in Topeka, KS. Two weeks later, I transferred to the new unit as a Wage Grade 11 federal employee at three times my military salary.
A year later, I transferred to a civilian position with the ANG unit in Pittsburgh, PA. One of the units was deactivated before the end of the year, and we were notified of a pending Reduction in Force (RIF)! Fortunately, many specialists opted for an early out with a $25,000 separation incentive payment. No one was laid off, and our jobs were upgraded.
Many opportunities are created during times like these. The work experience and training prepared me for my next major promotion. I was selected for a Federal Aviation Administration (FAA) system specialist position at a significant salary increase.
Three years after transferring to the FAA, the agency initiated a RIF, the first of many reorganizations over the next 30 years. One technician was forced out, and another resigned.
I could list at least three other significant reorganizations; in each case, only a few were displaced due to Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payments (VSIPs). Most that left refused to relocate to another facility even though the agency offered to pay all relocation expenses.
Federal agencies use these tools to avoid RIFs, called layoffs in the private sector. They have the least negative impact on the employee, avoiding potential litigation and generous severance package costs.
Why DOGE
I retired from federal service in 2005 after 36 years of service and have been affiliated with the government in one way or another for 56 years! Yes, there is waste and excess throughout the government.
The Pentagon failed its seventh consecutive audit because it couldn’t fully account for its massive $824 billion budget. The United States Postal Service had a net loss of $16 billion for fiscal 2023 and 2024 and projects a $6.9 billion loss in 2025! The federal sector is ripe for change and accountability across the board.
I saw it firsthand during my military and civilian federal service. A new shipment of supplies arrived at Family Services, and the military bulldozed perfectly good equipment to make room for the new. Unused parking lots were paved simply because the base had excess funds to spend before the end of the fiscal year.
When I was a technical support manager with the FAA, numerous facilities closed or were decommissioned. Years after the facility was closed, the agency continued paying for leased space we weren’t using.
This is more accentuated today; approximately half the workforce can telework or work remotely. According to the Office of Management and Budget (OMB), 1,057,000 are eligible for telework, of which 228,000 work remotely full-time.
Telework is when employees perform their duties from an approved alternative worksite, typically from home, but must report regularly to the agency’s worksite. Employees in remote jobs don’t report to an official agency worksite regularly; they work from home or other alternative worksites anywhere in the country and outside their agency’s official worksite commuting area.
End of Year Bonanza
Agency directors hold off on filling positions until the end of the fiscal year to use the money saved, along with any other unspent funds, before September 30. Managers maintain prioritized lists throughout the year for potential monetary employee awards, nice-to-have equipment and supplies, and travel for various meetings and events.
They feel obligated to spend every cent to ensure that next year’s allocation will be equal to or greater than their current budget. Including these line items in their annual budget would be more efficient and avoid this wasteful last-minute rush.
Heading for the Exits
With the new administration’s emphasis on operational efficiency and savings, many federal employees are reviewing their retirement eligibility and the VSIP and VERA early retirement options that will be used first if cuts are warranted.
Approximately 30% of federal employees are eligible for early or regular retirement over the next few years. That’s a substantial number by any standard and will moderate the disruption coming down the pike.
The Federal Employees Retirement System (FERS) offers several enhancements not typically provided in the private sector, such as a Special Supplement similar to Social Security, which is paid as an annuity until you reach age 62. There is also an option to retire with as little as 10 years of service at the full retirement age of 57 For those born on or after 1970, the full retirement age decreases for those born before this date.
The last hired are the first to go when a RIF is implemented. Younger employees have an opportunity to stay if enough of the senior employees take a regular or early retirement.
There is talk about relocating many Washington D.C. positions nationwide where their expertise will have the greatest impact. The D.C. metropolitan area employs over 350,000, and from past experience, many will not relocate and resign if their family roots are there. This happened during a reorganization years ago, and I was surprised that many refused to relocate from this high-cost-of-living area.
cost savings and efficiencies
DOGE will look at cost savings and efficiencies across the board, including insisting contractors properly manage and track their inventory and provide services within budget and on schedule. I don’t see less but more contracting coming online as the government seeks ways to streamline operations and reduce overhead and leased space, especially if federal workers continue teleworking offsite and remotely.
During reorganizations, those willing to relocate will have abundant opportunities for a change of scenery and promotions, as many top positions are vacated up and down the hiring chain.
There will be more oversight, and the DOGE initiative will provide opportunities for displaced federal workers to segway into positions at contracting firms across the country. The displaced federal workers are the most experienced in their fields and a natural fit for any move to contract out services.
Employees who retire or take early retirement typically occupy higher-grade positions within most organizations. Those remaining can bid on any vacant position on an agency’s organizational chart if they meet the basic qualifications for the job.
It may seem like the world is closing in on federal employees and it may be a tough ride at first, but those who persevere will likely come out on top. Stay the course and look for opportunities wherever they are found.
