Federal Agencies Rehiring Employees After Cost-Cutting Measures
The recent decision by several federal agencies to rehire hundreds of employees laid off during a cost-cutting initiative has sparked significant debate across the political spectrum. This move comes after a period of intense restructuring under the Department of Government Efficiency (DOGE), which was established with the goal of reducing waste and improving efficiency within the federal government.
Background on the Cost-Cutting Initiative
In early 2025, the Trump administration initiated a series of aggressive cost-cutting measures aimed at reducing the size of the federal workforce. These efforts were spearheaded by Elon Musk’s DOGE, which targeted various federal agencies, including the General Services Administration (GSA). The GSA, responsible for managing thousands of federal workplaces, became a primary focus of these initiatives.
As part of this strategy, the GSA sent more than 800 lease cancellation notices to landlords, often without informing the government tenants. Additionally, the agency published a list of hundreds of government buildings that were targeted for sale. These actions were intended to generate billions in savings by reducing the number of leased properties and selling federally owned buildings.
Impact on Federal Employees
The impact of these measures was felt most acutely by federal employees. Thousands of GSA employees left the agency as part of programs that encouraged them to resign or take early retirement. Hundreds of others were dismissed as part of an aggressive push to reduce the size of the federal workforce. Although these employees did not show up for work, some continued to receive pay during this period.
This situation led to a critical shortage of staff, which disrupted the basic functions of the agency. Chad Becker, a former GSA real estate official, highlighted the challenges faced by the agency, stating that it was left “broken and understaffed.” He emphasized that the sudden reversal of the downsizing reflects how Musk and his DOGE had gone too far, too fast.
Rehiring Efforts
In response to the growing concerns, the GSA has begun the process of rehiring employees who were laid off. According to an internal memo obtained by The Associated Press, the agency has given the employees — who managed government workspaces — until the end of the week to accept or decline reinstatement. Those who accept must report for duty on October 6 after what amounts to a seven-month paid vacation.
This rehiring effort mirrors similar actions taken by other agencies targeted by DOGE. Last month, the IRS announced it would allow some employees who took a resignation offer to remain on the job. The Labor Department has also brought back some employees who took buyouts, while the National Park Service earlier reinstated a number of purged employees.
Financial Implications
The financial implications of these decisions are significant. During the period when employees were on unpaid leave, the GSA incurred high costs to maintain dozens of properties whose leases it had slated for termination or allowed to expire. These costs were ultimately passed along to taxpayers.
The GSA spokesperson stated that the agency’s leadership team has reviewed workforce actions and is making adjustments in the best interest of the customer agencies they serve and the American taxpayers. However, the exact financial impact of these decisions remains unclear.
Political Reactions
Democrats have criticized the Trump administration’s approach to cutting costs and jobs, arguing that the reductions did not deliver any savings. Rep. Greg Stanton of Arizona, the top Democrat on the subcommittee overseeing the GSA, stated there is no evidence that the reductions at the agency “delivered any savings.” He added that the actions created “costly confusion while undermining the very services taxpayers depend on.”
The GSA was identified as a chief target of DOGE’s campaign to reduce fraud, waste, and abuse in the federal government. A small cohort of Musk’s trusted aides embedded in GSA’s headquarters pursued plans to abruptly cancel nearly half of the 7,500 leases in the federal portfolio. DOGE also wanted the GSA to sell hundreds of federally owned buildings with the goal of generating billions in savings.
Pushback and Adjustments
Pushback to the GSA’s dumping of its portfolio was swift, and both initiatives have been dialed back. More than 480 leases slated for termination by DOGE have since been spared. These leases were for offices scattered around the country that are occupied by such agencies as the IRS, Social Security Administration, and Food and Drug Administration.
The public may soon get a clearer picture of what transpired at the agency. The Government Accountability Office (GAO), an independent congressional watchdog, is examining the GSA’s management of its workforce, lease terminations, and planned building disposals and expects to issue findings in the coming months.
Ongoing Challenges
Despite the rehiring efforts, the GSA continues to face significant challenges. The internal turmoil has led to 131 leases expiring without the government actually vacating the properties. This situation has exposed the agencies to steep fees because property owners have not been able to rent out those spaces to other tenants.
As the GAO prepares to release its findings, the GSA’s management of its workforce and properties will be under increased scrutiny. The agency’s actions have raised questions about the effectiveness of the cost-cutting measures and their impact on federal services.
Conclusion
The recent rehiring of federal employees by the GSA and other agencies marks a significant shift in the administration’s approach to cost-cutting. While the initial measures were intended to reduce waste and improve efficiency, they have led to disruptions and financial challenges. As the GAO continues its investigation, the long-term impact of these decisions on federal services and taxpayer costs remains to be seen.
