Washington: The Trump administration has directed federal agencies to prepare for another wave of layoffs as part of a sweeping effort to reduce the size of the U.S. civil service. According to an internal memo issued Wednesday, agencies must submit workforce reduction plans by March 13, just a day before current government funding expires.
The memo, signed by White House budget director Russell Vought and acting Office of Personnel Management head Charles Ezell, calls for “significant reductions” in staff but does not specify exact numbers beyond the 100,000 employees who have already accepted buyouts or been terminated.
Musk’s Role in Government Downsizing
The directive came as President Donald Trump held his first cabinet meeting with billionaire Elon Musk, who has been leading an aggressive budget-cutting initiative. Musk, wearing a black baseball cap, attended the meeting but did not sit at the main table with Trump and other senior officials.
Musk’s downsizing campaign aims to slash $1 trillion from the $6.7 trillion federal budget. However, his efforts have sparked tensions within the administration, particularly after a directive was sent on Saturday requiring all 2.3 million federal employees to justify their jobs. Some agencies reportedly advised staff to ignore Musk’s demand.
Trump, addressing the media on Tuesday, suggested compliance with the directive was “somewhat voluntary, but it’s also if you don’t answer, I guess you get fired.”
Tax Cuts and Fiscal Challenges
As Trump moves to reduce the federal workforce, his administration is also pushing Congress to approve tax cuts that could decrease government revenues by trillions. Late Tuesday, House Republicans narrowly passed a plan, 217-215, that proposes $4.5 trillion in tax cuts while slashing up to $2 trillion in spending.
The administration is now exploring further reductions in health and food aid programs, though specific details have yet to be announced. Critics warn that these cuts, combined with layoffs, could significantly impact public services and economic stability.
Despite Musk’s cost-cutting push, government spending has continued to rise. A Reuters analysis of Treasury data revealed that federal expenditures reached $710 billion in Trump’s first month of the new term, marking a 13% increase from the previous year. The surge is attributed to rising interest payments on the $36 trillion national debt and growing healthcare and retirement costs for an aging population.
Resignations and Legal Challenges
Musk’s aggressive restructuring has also faced internal resistance. On Tuesday, 21 employees from the Department of Government Efficiency (DOGE) resigned in protest, stating they refused to participate in efforts to dismantle public services or risk Americans’ private data.
Security concerns have escalated as Musk’s team has sought access to sensitive government records, including tax, health, and personnel data. Federal judges have blocked some of these efforts, prompting Musk to criticize the judiciary.
“The only way to restore rule of the people in America is to impeach judges,” Musk wrote on X. “No one is above the law, including judges.”
Impeaching federal judges, however, requires a two-thirds Senate majority—a difficult hurdle even with Republicans holding 53 seats.
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Expanding Layoffs Across Agencies
The administration’s layoffs have already affected at least 25,000 federal employees, with an additional 75,000 offered buyouts. Most of those terminated had been in their roles for less than a year, making them easier to dismiss under civil service rules. However, sources indicate that long-term career staff are now at risk.
The Internal Revenue Service (IRS) is bracing for another wave of job cuts beyond the 12,000 already targeted, according to individuals familiar with the matter. Meanwhile, the Interior Department has instructed agencies such as the U.S. Fish and Wildlife Service and the Bureau of Indian Affairs to prepare for workforce reductions ranging from 10% to 40%.
As agencies scramble to adjust, the administration’s cost-cutting drive continues to fuel uncertainty, sparking concerns about the long-term impact on federal services and governance.
