White House formally instructs agencies to prepare for 'large-scale' layoffs and reorganization
The Trump administration is directing all federal agencies to "promptly" begin preparations for large-scale layoffs and restructuring, and submit plans for doing do so by March 13, according to a new memo obtained by ABC News.
The memo, from White House Office of Management and Budget Director Russell Vought, and Charles Ezell, the head of the Office of Personnel Management, was issued Wednesday morning and includes instructions for agencies to follow as they work to downsize their workforces and, in some cases, physical footprints.
The move could clear the way for the administration to begin dismantling or shrinking agencies like the Department of Education and will likely prompt a new flurry of lawsuits as the process takes shape.
"President Trump required that 'Agency Heads shall promptly undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law.' President Trump also directed that, no later than March 13, 2025, agencies develop Agency Reorganization Plans," the memo stated.
"Pursuant to the President’s direction, agencies should focus on the maximum elimination of functions that are not statutorily mandated while driving the highest-quality, most efficient delivery of their statutorily-required functions," the letter added.
The memo encourages agencies to "consolidate" areas that are "duplicative" and "implement technical solutions that automate routine tasks," a directive that aligns with Elon Musk's public statements about automating some of the work conducted by government workers.
The memo includes some exemptions: positions related to law enforcement, border security, national security, immigration enforcement and public safety roles. Military personnel and all uniformed personnel are also exempt -- including the U.S. Coast Guard, the Public Health Service and commissioned officers in the National Oceanic and Atmospheric Association.
The directive also exempts the U.S. Postal Service, the Executive Office of the President and any presidential appointments and Senate-confirmed roles.
The memo also states that "agencies or components that provide direct services to citizens," including Social Security, Medicare and veterans' health care, should not begin any restructuring without sign off from the Office of Management and Budget or OPM.
Additionally, the White House is asking agencies to submit by April 14 "any proposed relocations of agency bureaus and offices from Washington, D.C. and the National Capital Region to less-costly parts of the country."
The possibility of moving large chunks of the government out of the Washington metropolitan area, in addition to large-scale layoffs, could severely affect the local economy -- and those of Maryland and Virginia.
FBI Director Kash Patel has signaled plans to move around 1,000 employees from the agency's headquarters to other offices around the country, as well as another 500 to Huntsville, Alabama.
