RIF 2025 Trump Administration Allowed to Proceed with Mass Federal Layoffs

“RIFs have begun and they are substantial.” Trump Administration Allowed to Proceed with Mass Federal Layoffs

That single statement from the Office of Management and Budget (OMB) on October 10 sent shockwaves through the federal workforce. For the first time in decades, large-scale Reductions in Force (RIFs) are being implemented during an ongoing government shutdown an unprecedented step that’s leaving thousands of federal employees unsure of their future.

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If you’re a federal worker especially in agencies like the IRS, HHS, Education, HUD, Treasury, or DHS this news feels personal. And it should. But while the political noise dominates the headlines, what matters most now is understanding what this means for you: your job security, your pension, and your next move.

As federal retirement advisors, we’ve helped employees navigate similar times of uncertainty. Here’s what you need to know and what you should be doing right now.

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What’s Happening ‘Substantial’ Layoffs Across Federal Agencies

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The Trump administration is officially moving forward with mass federal layoffs, following through on a threat first made at the start of the 2025 government shutdown.

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Under normal circumstances, employees are either furloughed (temporarily out of work) or classified as “essential” and continue to work during a shutdown. But this year, OMB updated its guidance to allow RIFs to proceed even while the government is shut down a major departure from precedent.

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Agencies Impacted

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According to recent filings and agency confirmations, thousands of federal employees have already received RIF notices:

• Commerce Department: ~315 employees
  
  
• Education Department: ~466 employees
  
  
• Energy Department: ~187 employees
  
  
• Health and Human Services (HHS): 1,100–1,200 employees
  
  
• Housing and Urban Development (HUD): ~442 employees
  
  
• Homeland Security (DHS): ~176 employees
  
  
• Treasury Department (including IRS): ~1,446 employees
  
  
• Environmental Protection Agency (EPA): 20–30 “intent to RIF” notices
  
  

In total, the administration has signaled that “a lot” more layoffs are forthcoming as agencies align their budgets with “presidential priorities.”

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Why These RIFs Are Different Legal, Political, and Procedural Shifts

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RIFs aren’t new but they’ve never been executed under circumstances like these.

Historically, no administration has ever fired furloughed federal employees during a government shutdown. The Antideficiency Act has generally prevented such moves. But in 2025, the Supreme Court cleared the way for the administration to proceed, ruling that agencies have broad discretion to reorganize their workforces even without an active budget in place.

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The Office of Personnel Management (OPM) then issued updated guidance allowing RIFs to occur “as necessary to align agency programs with available appropriations.” This meant that while most federal employees expected back pay after the shutdown, some would instead receive permanent separation notices.

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Union and Legal Pushback

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Unions are challenging these actions.
The American Federation of Government Employees (AFGE) and National Treasury Employees Union (NTEU) have both filed lawsuits alleging the layoffs are illegal and “unprecedented.” AFGE President Everett Kelley called the move “an abuse of power,” while lawmakers like Rep. Don Beyer (D-Va.) argued that “directing firings during a shutdown violates criminal statutes.”

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Still, as of mid-October 2025, most agencies are proceeding with their RIF plans, even as court reviews continue.

Also read - DoD RIF 2025

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The IRS Example When Workforce Cuts Hit the Core

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No agency embodies the complexity of these layoffs more than the Internal Revenue Service (IRS).

After already losing over 25% of its workforce through voluntary separations and early retirements earlier this year, the IRS has now begun issuing RIF notices primarily targeting its Information Technology (IT) division.

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According to internal notices, affected IRS IT employees will separate from the agency by December 9.

Ironically, the IRS is still posting job openings to replace some critical roles, leading to confusion within the ranks. As one IRS employee put it:

“They’re hiring for the same positions they’re eliminating. Nobody knows what the plan really is.”

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The agency’s leadership has admitted that these cuts are forcing a “reset and reassessment” of capacity heading into the next tax filing season.

For employees, this underscores the reality: even core agencies are not immune and career stability can change overnight.

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What a RIF Really Means for You Beyond the Headlines

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Let’s take a moment to move from politics to practicality.
If you’ve received a RIF notice or think you might here’s what it actually means in federal employment terms.

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RIF vs. Furlough: Know the Difference

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• Furlough:  Furlough Temporary unpaid status; employees generally return to work once funding resumes and are usually entitled to back pay.
  
  RIF: Permanent job elimination due to lack of funds, reorganization, or position abolishment. Employees are separated from service, often with appeal rights and severance.

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Impact on Your Benefits

Here’s how a RIF can affect key elements of your federal benefits:

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Mini-Scenario Example

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Let’s say you’re a GS-13 employee with 18 years of service and are 49 years old.
If RIF’d today:

• You likely do not meet the minimum retirement age (MRA).
  
  
• But if offered an early-out (VERA), you may retire immediately with a reduced annuity.
  
  
• Without that, you could defer your pension until reaching your MRA typically age 57 preserving your service time but delaying income.
  
  

These nuances matter, and decisions made under pressure can have lifelong impact.

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Immediate Steps to Take If You Receive a RIF Notice

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You may feel blindsided, but you still have control over your next steps. Here’s what to do:

1. Verify Your Service Record
   Review your SF-50s and ensure all service time, pay grades, and appointments are correctly listed. Errors can delay or reduce retirement benefits.
   
   
2. Ask About Your Options Don’t Assume None Exist
   Some agencies offer Voluntary Separation Incentive Payments (VSIP) or Voluntary Early Retirement Authority (VERA). These can soften the financial impact.
   
   
3. Understand Appeal Rights
   If you believe the RIF was misapplied, you can appeal to the Merit Systems Protection Board (MSPB) but deadlines are tight (usually 30 days).
   
   
4. Estimate Your Pension Under Multiple Scenarios
   Project what your FERS annuity would be now vs. in 1–3 more years of service. A professional pension review can quantify what’s at stake.
   
   Do Not Rush Major Financial Decisions
   Wait until you have written confirmation of separation and full details before changing your TSP allocations, withdrawing funds, or rolling over accounts.

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Planning Ahead Navigating Uncertainty with Confidence

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Even if your agency hasn’t issued notices, planning ahead is wise. Here’s how to prepare:

• Update Your Service Record Now. Correcting errors later can take months.
  
  
• Review Your “High-3” Average. Know what three consecutive years determine your annuity.
  
  
• Build a Bridge Plan. Estimate how long your savings, severance, or temporary work could cover living expenses.
  
  
• Rebalance Your TSP. In times of uncertainty, protect what you’ve built; consider moving part of your balance to lower-risk funds.
  
  
• Talk With a Federal Retirement Advisor. Personalized projections and tax strategies can make the difference between panic and preparedness.
  
  

Actionable Takeaways

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1. Don’t ignore a RIF notice time limits for response are short.
   
   
2. Gather your SF-50s and benefits statements immediately.
   
   
3. If offered a buyout, calculate your break-even point before accepting.
   
   
4. Review FEHB and FEGLI continuation eligibility before separation.
   
   Schedule a consultation ideally before making retirement elections.

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Schedule a free consultation with our federal retirement experts.

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We’ll walk you through your options, analyze your service record, and create a plan to protect your income, benefits, and peace of mind no matter what happens next.

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The Bigger Picture What This Means for Federal Service

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These layoffs mark a turning point for the federal workforce.
Agencies are being reshaped to match shifting priorities, and institutional knowledge is being lost at an alarming rate. For career civil servants, the message is clear: even long service no longer guarantees security.

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Yet federal benefits remain among the strongest in the nation and with careful planning, you can preserve most of what you’ve earned. In our experience advising thousands of federal employees, those who act early checking records, calculating options, and understanding timelines fare far better than those who wait until after separation.

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Conclusion: Take Control of What You Can

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No one can stop a RIF notice from arriving. But you can control how ready you are when it does.
Understanding your entitlements, calculating your pension options, and building a personal transition plan can turn anxiety into clarity.

If you’ve received a RIF notice or simply want to know how potential layoffs could affect your benefits we can help.

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Desclaimer -

The information provided in this article is for educational and informational purposes only. It should not be interpreted as legal, financial, or employment advice. While we strive to ensure the accuracy and timeliness of the content, federal workforce policies, regulations, and legal interpretations may change. Readers are encouraged to verify details through official government sources such as the Office of Personnel Management (OPM), Office of Management and Budget (OMB), and their respective agency HR departments.