Federal employees are leaving their jobs in droves, and the effects are beginning to trickle beyond Washington.
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By the end of 2026, officials predict there will be 300,000 fewer federal workers from January, according to The New York Times. [1]
The article from August noted that this translates to losing one in eight federal civilian workers and is the largest single-year decline in the civilian federal workforce since World War II.
The bulk of the 300,000 figure is from resignation incentives — employees who voluntarily took an early retirement or resigned and continued to get paid through September — but it also includes those who have been laid off.
With so many leaving, it’s not too surprising that some of the government’s functions might be hampered and the costs could add up.
How the disruption might impact American taxpayers
From the start of the year to Oct. 23, over 211,000 civil servants have left the workforce through involuntary and voluntary workforce reductions, according to the Partnership for Public Service. [2]
“This campaign to weaken the federal civil service has targeted the very people who keep our government running and provide essential services that we all rely on every day,” said the organization.
With many federal workers leaving, the remaining employees are left to shoulder an increasingly heavy workload.
The Washington Post also reported on this “historic wave of retirements and other departures” or “mass exodus” in recent months “putting enormous strain on agencies as they cope with a new government shutdown and administration layoffs.” [3]
The Department of Defense, the Treasury, and the Department of Agriculture have seen large reductions to their workforce, with each department losing at least 20,000 workers since the beginning of 2025, according to the Partnership for Public Service analysis.
Beyond affecting services and workers’ families, this could also take a toll on the federal government’s budget, which ultimately impacts the taxpayer.
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Many workers were offered lump-sum payments of up to $25,000 as an incentive to voluntarily resign. Additionally, the “Fork in the Road” program allowed federal workers to resign but continue receiving pay for months.
Many federal employees are also retiring ahead of schedule, which means the federal government must begin to make more pension payments, even while collecting less in payroll contributions from a shrunken federal workforce. Essentially, this represents another financial obligation for the federal government, which already runs a budget deficit in the trillions. It’s possible the increased pension obligations will add to the government’s debt, which in some ways puts the burden on every American.
Lastly, there’s a cost to expertise. The Internal Revenue Service let too many people leave, creating “a potential gap in mission critical expertise,” according to an internal email from the agency’s acting human capital officer seen by The Times.
How to prepare for a departure from the federal workforce
The employment atmosphere in the federal government is currently chilly, to say the least. Many current and former employees are reporting tough conditions, which could partially explain the push for many to jump into retirement early or at least part ways with the federal government as an employer.
According to the Federal News Network, 70,351 employees retired in the first six months of 2025 as compared to 56,756 employees who left federal service during the first six months of 2024. [4]
If you find yourself working in public service and nearing retirement, make it a priority to stay on top of your benefits. Keeping detailed records about your pension and other retirement benefits could help you navigate an increasingly distressed system in the lead-up to retirement.
Unfortunately, the processing time for retirement paperwork is increasing for federal employees, according to government data. With that, staying proactive about filing your paperwork on time is essential. Additionally, it’s a good idea to expect some delays to your benefits.
If possible, don’t entirely rely on your government benefits as an income for the very beginning of your retirement. It might take a few extra months to receive your benefits, so a little bit of preparation can go a long way. Make an effort to build your own diversified safety net, including an emergency fund. If you end up needing to lean on your savings in the early days of your retirement, you’ll be grateful you prepared in advance.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The New York Times (1); Partnership for Public Service (2); The Washington Post (2); Federal News Network (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.