Sharing the Facts About the State Impact of Federal Workforce Cuts

Issue Areas

Tens of thousands of Americans in states across the country have had their lives disrupted by far-reaching job cuts to the federal workforce. Through Elon Musk’s Department of Government Efficiency (DOGE), the Trump administration has fired or put on administrative leave at least 58,000 federal employees, with plans to cut at least an additional 145,000. And 76,000 people have taken buyouts designed to eliminate government roles. In total, this will impact more than a quarter of a million workers. These actions have had a devastating impact in the states.

While DOGE has claimed its cuts have saved the government money, the harsh impacts have hit home for communities throughout the country. Federal employees work in every state in the union. They include nurses with the Department of Veterans Affairs, food and drug inspectors with the Department of Health and Human Services, and national park rangers with the Department of the Interior. Americans were already feeling the financial strain from economic decisions in that past few months that have driven up the cost of living; these cuts have only exacerbated that pain.

The cuts have also disrupted essential services in the states. Workers that track and prevent infectious diseases, investigate firefighter deaths, and assist low-income families with health care and childhood education are now out of jobs—with no one left to do the work. DOGE has also closed hundreds of offices in states across the country, including those occupied by agencies that provide Social Security benefits to the elderly and ones that protect workplace health and safety. Massive layoffs to the federal workforce don’t just impact those employees; they hurt Americans who depend on the resources and services they provide. And polling shows that most Americans have favorable views of government agencies.

Legal challenges to the cuts are ongoing. Attorneys general from 19 states and the District of Columbia are suing the Trump administration over these firings, arguing federal agencies did not follow proper procedures with the sweeping cuts.

While U.S. Treasury Secretary Scott Bessent suggested that those who lost their jobs from “shedding excess labor in the federal government” could get manufacturing jobs created by the president’s international tariffs, states instead are working to rebuild the livelihoods lost by these mass firings. Governors across the country are encouraging displaced federal workers to apply to state and local openings, hoping to bolster their workforce with skilled and experienced government employees. Some governors have even expedited the hiring process to ensure people can soon land on their feet, while others are launching initiatives to assist former federal employees with education and training programs.

Here are some key takeaways about the drastic cuts to the federal workforce, and its impact on states:

  • These job cuts are hurting American communities.
    • Federal employees live, work, and contribute to communities of all shapes, sizes, and political leanings across the country. Aside from postal workers and those serving in the military, there are 2.4 million federal workers nationwide.
    • In communities across the country, federal workers take care of our national parks, develop vaccines that save lives, and ensure our neighbors have the health care they need. Eight-in-10 of them live outside the D.C. area.
    • With severe job cuts to the federal workforce, Americans are already feeling the loss of essential services in their communities, such as Social Security, workplace safety, and veterans’ health care.
  • An effective, efficient government that serves the people is the right goal.
    • But cuts that stop government from working for the people are not efficient. They’re not improving services or helping Americans by shedding the federal workforce. In fact, they’re just harming states and communities by cutting off access to services taxpayers count on and leaving more people unemployed.
    • At the same time, the Trump administration is also trying to illegally withhold funding for these services, doubling down on the government’s unwillingness to service the people, for which they are responsible. Most Americans disagree with President Trump’s decision to withhold federal funding to the states without congressional approval.
  • Federal workers contribute to local economic growth.
    • Fewer employed people in the states means less tax revenue. These federal job cuts could, in turn, hurt state and local budgets.
    • This is on top of the financial strain from economic decisions, which in the past few months have driven up the cost of living and prompted economists to fear the U.S. could be heading into a recession.
  • People don’t join the federal workforce to get rich; they do it because they love their country and are driven to help the American people.
    • The federal workforce comes from all walks of life, representing the American people. Around 30% of federal workers are veterans, spouses of veterans, or spouses of active military members. More than a fifth of federal workers are people with disabilities.
    • Federal workers help facilitate grant funding to local projects that support the training of teachers and principals, safer and more sustainable farming, and early childhood education.
  • States are stepping up to support federal employees who have lost their jobs.
    • Governors have launched new initiatives that are encouraging former federal employees to apply to state and local job openings, strengthening their workforce and throwing a life preserver to people out of work. States have thousands of job openings that could use the expertise of people who have worked in federal agencies and giving these people the ability to keep calling their state their home.
    • These impacts are why state attorneys general are suing the Trump administration over the sweeping layoffs. They are committed to protecting their residents. Legal challenges remain ongoing.