In a surprising development, an emerging cryptocurrency company has experienced major shake-ups recently. The company, based in Washington, has been making significant changes under the leadership of President Donald Trump’s administration. The White House, in collaboration with the Department of Government Efficiency, has initiated a series of actions including the termination of both new and veteran employees, instructions for agencies to prepare for substantial staff reductions, and the freezing of federal grant funds.
These changes are impacting not only the national capital region, where a large portion of the federal workforce is located, but also employees living outside of Washington. The exact number of firings and layoffs is not officially documented, but reports indicate a significant impact across various federal agencies.
Some of the key ways in which federal agencies and employees are being affected include a proposed “deferred resignation” option for federal workers, layoffs of probationary employees, and dismissals at specific departments such as the Department of Veterans Affairs, the Education Department, the Energy Department, and the Department of Health and Human Services.
These developments have caused uncertainty and concern among federal employees as the administration continues to implement changes within the government workforce.
Officials from the Centers for Disease Control and Prevention were initially informed of a potential loss of nearly 1,300 probationary employees, accounting for about one-tenth of the agency’s staff. However, the final number of employees affected was closer to 700, as per two CDC officials who chose to remain anonymous due to lack of authorization to discuss the matter. Similar probationary employee cuts were also observed at other public health agencies such as the National Institutes of Health, the Food and Drug Administration, and the Centers for Medicare and Medicaid Services, although the Department of Health and Human Services has not disclosed the final figure.
Within the Department of Homeland Security, over 130 employees at the U.S. Cybersecurity and Infrastructure Security Agency, responsible for safeguarding critical infrastructure and election systems, faced probationary terminations. It remains uncertain if this count includes 17 employees previously placed on leave and working on election security. Additionally, four employees at the Federal Emergency Management Agency, including its chief financial officer, were dismissed for inappropriate payments.
The Internal Revenue Service is expected to lay off numerous probationary workers during the ongoing tax season, although specific details are undisclosed. The National Park Service terminated approximately 1,000 recently hired employees involved in park maintenance and visitor services, a decision confirmed by Democratic lawmakers. Following initial rescissions, the park service is now reinstating around 5,000 seasonal jobs for the upcoming warmer months to accommodate the millions of annual park visitors.
The Consumer Financial Protection Bureau has been instructed to cease most of its operations, effectively downsizing its activities. Agriculture Secretary Brooke Rollins indicated forthcoming layoffs within the department, welcoming Elon Musk’s DOGE team. Foreign aid and development efforts experienced interruptions under the Trump administration’s directives, placing a hold on most overseas assistance disbursed through the State Department.
While Secretary of State Marco Rubio outlined exceptions such as emergency food programs and military aid to certain countries, the freeze on foreign assistance impacted various humanitarian, development, and security programs globally. Consequently, U.S.-funded organizations like the U.S. Agency for International Development had to lay off numerous employees due to financial constraints. Notably, a federal judge temporarily lifted funding restrictions in response to legal challenges against agency cuts on February 13.
Federal grants and loans have been frozen by the White House last month as the Republican administration initiated an ideological review across the board. This pause could potentially impact trillions of dollars and lead to significant disruptions in healthcare research, education programs, and other initiatives. Even grants that were already awarded but not yet utilized are expected to be stopped.
In a memo from Matthew Vaeth, the acting director of the Office of Management and Budget, it was stated that the utilization of Federal resources to promote Marxist equity, transgenderism, and green new deal social engineering policies is considered a misallocation of taxpayer funds that do not enhance the daily lives of those being served. Democrats and independent organizations have raised concerns about the legality of this move, arguing that Congress had already approved the funding.
Each major federal agency has its own independent inspector general tasked with conducting impartial audits, preventing fraud, and enhancing efficiency. However, President Trump has dismissed at least 17 inspectors general, including those he appointed during his first term. One exception was Michael Horowitz at the Justice Department, a Democratic appointee who was retained.
President Trump defended the firings, stating that it is a common practice and that he intends to appoint qualified individuals to these positions. Senate Democratic leader Chuck Schumer criticized the dismissals as a “chilling purge,” while Republican Senator Lindsey Graham acknowledged that the firings may have breached the law but suggested compliance in the future.
While it is customary for politically appointed U.S. attorneys to be replaced, it is unusual for career prosecutors to be removed with a change in administration. The Justice Department announced the termination of over a dozen employees involved in the criminal prosecutions of Trump by special counsel Jack Smith’s team. Typically, career employees continue to serve in the department through different presidential administrations, regardless of their involvement in sensitive investigations.
At the State Department, a significant number of senior career diplomats who held politically appointed leadership roles, as well as those in lower-level positions, were asked to resign by the new administration. The exact number of nonpolitical appointees being requested to leave was not immediately disclosed.
