The incoming Trump administration is preparing an immediate series of executive orders aimed at reshaping the federal workforce, and also expected to include changes to diversity initiatives, employee benefits, collective bargaining rights, and return-to-office (RTO) policies.
The measures highlight a renewed focus on reducing federal bureaucracy and implementing conservative policy priorities.
Key aspects of the proposed changes include reversing diversity, equity, and inclusion (DEI) programs established under the Biden administration, with advisors describing such initiatives as inefficient.
Officials are also exploring administrative actions to downsize the federal workforce, targeting inefficiencies without requiring congressional approval. Conservative allies have emphasized the need for agencies to adopt streamlined operations and suggested that staff reductions are inevitable.
Unions and collective bargaining
Efforts to weaken federal unions are central to the administration’s goals. A memo circulated by the conservative group Americans for Tax Reform outlines plans to limit collective bargaining rights, citing a 1978 law allowing exclusions for “national security concerns.”
Recommendations include restricting union protections at agencies like the Department of Veterans Affairs, the Transportation Security Administration, and the Defense Department. While prior administrations have used similar measures on a smaller scale, Trump’s allies propose extending them significantly.
Legal challenges are anticipated, with unions and civil rights advocates likely to contest the scope of the orders. About 56% of the federal workforce operates under collective bargaining agreements, covering workplace policies such as remote working.
Modifications to these contracts could impact thousands of employees.
Trump employee benefits plans
Proposals to cut federal employee benefits are also under discussion. Among the changes are:
Increasing employee contributions to the federal pension system, projected to save $44 billion over a decade.
Eliminating supplemental pensions for retirees aged 57 to 62.
Basing pensions on the final five years of service, rather than the last three, reducing payouts.
Transitioning federal health insurance to a voucher model.
The measures, coupled with audits to address potential benefit fraud, aim to address budgetary constraints while aligning with broader fiscal goals. Additionally, there are plans to shift new hires to at-will employment, effectively removing job security for future federal employees.
Diversity policies under threat
The Biden administration’s DEI-focused executive orders, including mandates to enhance diversity and accessibility in federal agencies, are expected to be rescinded. Critics argue that these initiatives create division and inefficiency, while supporters highlight their role in fostering an inclusive workforce. Experts predict swift action to dismantle such programs as part of broader conservative objectives.
Implications for federal workforce
Experts fear that aggressive workforce reductions and policy shifts may erode critical government functions. Federal employees oversee essential services, including disaster response, public health, and infrastructure safety. Efforts to undermine workforce stability could result in significant talent loss, with potential impacts on service delivery.
Everett Kelley, president of the American Federation of Government Employees, defended the workforce’s role in serving the public, emphasizing the union’s opposition to measures that undermine employee benefits or livelihoods.
As the administration moves forward, the balance between implementing reforms and preserving government efficacy will be closely watched, with legal battles and labor disputes likely shaping the policy landscape.
HR leaders will need to keep a close eye on the changes and how they will impact their own internal policies that may require change or, as is likely with many DEI projects, cancellation.