Service Delivery In Question as Federal Government Sheds Jobs

Why it Matters

A comprehensive accounting of federal workforce changes in 2025 reveals a dramatic reshaping of the federal government. According to a Government Accountability Office report released June 17, the 22 largest federal agencies shed nearly 256,000 employees over a 13-month period ending in January 2026, representing a workforce decline exceeding 11 percent. The scale of federal employee layoffs in 2025 accelerated sharply in the second half of the year, with roughly two-thirds of all separations occurring after June.

What's at stake extends beyond headcount. The federal agency workforce reduction has reshaped how government operates across defense, education, environmental protection, and social services. Hiring freezes with narrow exceptions for national security and public safety positions have constrained agencies' ability to backfill critical roles. The data now available shows which agencies bore the heaviest burden and raises questions about operational capacity, service delivery, and whether the reductions align with stated policy priorities.

Scale of Government Job Cuts

The GAO examined 22 Chief Financial Officers Act agencies, which account for the largest share of federal employment. Nearly 378,000 employees separated from these agencies during 2025, while only about 127,000 were hired, producing the net decline of approximately 256,000 workers from December 2024 through January 2026.

The pace accelerated as the year progressed. About 65 percent of the 378,000 separations occurred in the second half of 2025, suggesting an intensification of federal employee separation data collection efforts or policy implementation after mid-year.

The reductions were not uniform across government. The Department of Education experienced the steepest decline at over 45 percent, while the Department of Homeland Security saw the smallest reduction at approximately 1 percent. Eighteen of the 22 agencies examined experienced workforce declines exceeding 10 percent, and multiple agencies reported declines surpassing 30 percent.

Executive Orders and Workforce Reductions

The federal agency workforce reduction accelerated following executive orders issued in 2025 that aimed to restrict hiring and reduce overall federal employment. These orders established the policy framework that agencies implemented through multiple mechanisms, including incentives for voluntary resignation or retirement, reductions in force, and hiring restrictions.

Notably, exceptions to hiring freezes were carved out for positions related to national security and public safety, potentially explaining why certain agencies like the Department of Homeland Security experienced minimal workforce decline while others contracted sharply.

The scale of voluntary departures was substantial in the initial phase. Approximately 144,000 federal employees were approved for a government-wide deferred resignation program during the January to June 2025 period, suggesting that voluntary incentives initially drew significant participation before the second-half acceleration occurred.

Data Gaps and Transparency Measures

The GAO report examined federal workforce changes in 2025 across the 22 largest agencies, but two agencies did not provide requested data. The Small Business Administration and U.S. Agency for International Development declined to submit information to the GAO, creating gaps in the complete picture of federal employment changes.

In response to the need for transparency, the Office of Personnel Management launched a new website in January providing monthly updates of agency workforce data. The agency subsequently added a tool in May allowing users to create customized tables from available workforce data, making workforce information more accessible to Congress, researchers, and the public.

A Series of Reports Tracking Ongoing Changes

The June report represents the second in a GAO series examining federal workforce changes. An earlier report covering January to June 2025 was published February 24, providing the first systematic accounting of employment changes following the executive orders.

The 111-page June report updates the picture for the July 2025 to January 2026 period, capturing the acceleration of separations that occurred in the second half of the year. Together, the reports document a 13-month transformation of federal employment levels across major agencies, offering policymakers and the public detailed metrics on the scale and distribution of federal government job cuts implemented during 2025.

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