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The Trump administration has reduced the federal workforce to its lowest level since 1966, with just 2.67 million people employed by the government as of August, down from over 3 million when Trump took office. This reduction is projected to save more than $20 billion annually through programs like the Deferred Resignation Program but has led to significant declines in IRS revenue collection and staffing cuts across various departments, particularly affecting Education, Agriculture, and Housing and Urban Development.
Written locally by qwen2.5:14b on 2026-10-02,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
In January 2025, under President Trump's second term, the US federal workforce dropped to approximately 2.7 million employees, the lowest level in 60 years according to the Bureau of Labor Statistics (BLS). This reduction marks a decrease of over 300,000 jobs since Trump returned to office, shrinking the workforce by about 11%. The majority of these cuts occurred within the first year of his second term. Notably excluded from this count are active military personnel (about 1.35 million) and intelligence agency employees (100,000 more).
Trump's campaign promise to reduce government size was fulfilled by giving Elon Musk free rein under the Department of Government Efficiency (DOGE) to cut jobs. While these measures aimed at saving money, they also led to significant downsizing in key agencies like the IRS and State Department. For example, revenue from IRS examinations fell 35%, from about $10 billion to $6.5 billion within a year due to workforce reductions.
Democrats criticized these cuts as attempts to intimidate government employees, with some claiming they could plunge society into chaos. However, supporters argue that the reduction targets inefficient or unnecessary departments, such as the Consumer Financial Protection Bureau and USAID.
Written for “US Government Workforce Reduction” on 2026-10-05,
grounded in this article and the 2 other(s) covering the same event.
The Trump administration has reduced the federal workforce to the lowest point in roughly 60 years, according to newly released data from the Bureau of Labor Statistics.
uncertain
administration → reduce → Statistics
As of August, just 2.67 million people were employed by the federal government, down from just over 3 million when President Donald Trump took office, marking the lowest headcount since 1966, per the BLS.
asserted
Trump → employ → BLS
The administration has estimated those cuts will produce significant savings, with OPM projecting that its Deferred Resignation Program alone will save more than $20 billion a year.
asserted
Program → estimate → billion
But the reductions have also come with costs.
asserted
reductions → come → costs
Revenue collected from IRS examinations fell 35%, from about $10 billion in fiscal 2024 to $6.5 billion in fiscal 2025, as the agency was undergoing steep workforce reductions that ultimately cut examination and collection staffing by nearly 10,000 employees, according to a Treasury watchdog.
uncertain
that → collect → watchdog
Former President Joe Biden secured nearly $80 billion in 2022 for the IRS over 10 years to upgrade its systems, improve taxpayer service and hire more staff, including enforcement personnel.
asserted
Biden → secure → personnel
The Trump administration has proposed further IRS cuts for 2027.
asserted
administration → propose → 2027
Not all agencies have been hit the same by the Trump administration’s cuts.
asserted
agencies → hit → cuts
The Departments of Education, Agriculture and Housing and Urban Development have been cut particularly hard, whereas headcount at the Department of Homeland Security, which has been responsible for carrying out much of the president’s immigration agenda, has remained largely unchanged.
asserted
which → cut → agenda
Not included in the BLS’ count of government employees are the roughly 1.35 million members of the armed services or the approximately 100,000 people employed by intelligence agencies.
Cutting the size of the federal workforce, a project that was eventually spearheaded by the Department of Government Efficiency and the Office of Personnel Management, was a major campaign promise during Trump’s 2024 run as he vowed to slim down what he said was a bloated government.
asserted
he → include → run
GAO found that agencies spent about $6.7 billion paying employees who took part in the Deferred Resignation Program, which allowed many of them to stop working while still collecting a paycheck until they officially left government.
asserted
they → find → government
The Partnership for Public Service also estimated the government spent $12.1 million rehiring workers who had previously been fired during the administration’s workforce reductions.
asserted
who → estimate → reductions
Despite the cuts, most of which happened during the president’s first year in office, the Trump administration spent 3% more on federal salaries during its first year in power than the Biden administration did during its initial year.
asserted
administration → happen → year
If Republicans win the midterm elections, the president has promised to cut $5,000 checks to all adult American citizens, a long-shot promise that, if followed through on, would cost the nation between $1.2 trillion and $1.35 trillion.
asserted
that → win → trillion
The White House did not respond to a request for comment when reached by Fox News Digital.
asserted
House → respond → Digital
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