The Trump administration has directed agencies to begin developing reduction in force (RIF) and reorganization plans outlined in President Trump’s “Department of Government Efficiency” Workforce Optimization Initiative Executive Order issued on February 11.

The Office of Personnel Management (OPM) has published a new memorandum for agency heads outlining plan details and next steps.

The Trump administration has criticized the federal government as costly, inefficient, and ineffective in delivering results to the American public. As part of his campaign, President Trump proposed sweeping reforms to address these issues.

The Workforce Optimization Executive Order mandates a transformation of the federal bureaucracy, with a focus on eliminating waste and improving service delivery. Agencies are instructed to prepare for large-scale RIFs and develop comprehensive reorganization plans to be submitted to the Office of Management and Budget (OMB) and OPM by March 13, 2025.

Core Principles of Agency Reorganization and RIF Plans

The memorandum advises agencies to create Agency Reorganization Plans (ARRPs) designed to:

• Enhance service delivery to the American public
• Increase productivity
• Reduce full-time equivalent (FTE) positions, focusing on non-essential roles
• Decrease the government’s real property footprint
• Lower overall budget expenditure

Agencies are encouraged to prioritize the elimination of non-mandated functions, consolidate duplicative roles, and streamline management layers. Additionally, technological solutions should be implemented to automate routine tasks, allowing staff to concentrate on high-value activities.

Available Tools and Strategies

To achieve the President’s efficiency goals, agencies should leverage several tools:

• Adherence to a hiring freeze, with possible exceptions allowing one hire for every four departures
• Leadership oversight on job offers and candidate evaluations
• Implementation of RIFs to eliminate non-essential functions
• Addressing employee performance and misconduct issues
• Continuing to evaluate probationary employees
• Job cuts through attrition and not renewing temporary positions
• Separating reemployed annuitants in RIF-affected areas
• Renegotiating collective bargaining agreements that hinder efficiency

Phased Approach for ARRP Development

Agencies are required to submit a two-phase ARRP to OMB and OPM:

Phase 1 (Due by March 13, 2025)

This phase focuses on initial agency cuts and reductions. These plans should identify service delivery subcomponents, statutory requirements, and potential eliminations or consolidations. They should also outline efficiency tools agencies intend to use to achieve efficiencies, including hiring freezes, attrition, and RIFs, with specific targets and timetables.

Phase 2 (Due by April 14, 2025)

Agencies should then submit a Phase 2 ARRP to OMB and OPM for review and approval
no later than April 14, 2025. Phase 2 plans shall outline a positive vision for more productive,
efficient agency operations going forward. Phase 2 plans should be planned for implementation by September 30, 2025.

Agencies must submit Phase 2 ARRP plans by April 14, 2025, outlining organizational changes, employee relocations, and cost-saving measures, including additional RIFs. These plans should be implemented by September 30, 2025, and include details on workforce reductions, technology improvements, and regulatory changes. Agencies must also submit monthly progress reports until July 16, 2025.

Exclusions and Considerations

Certain roles are excluded from ARRPs, including positions necessary for law enforcement, national security, and public safety. The Postal Service, military personnel and roles within the Executive Office of the President, among others, are also exempt.

Agencies providing direct services to citizens, such as Social Security and veterans’ health care, must ensure that ARRPs positively impact service delivery before implementing changes. These plans must be certified by OMB and OPM.