In a historic move that could fundamentally reshape the U.S. federal government, President Donald Trump signed an executive order aimed at dramatically reducing the size of the federal workforce. With Elon Musk, CEO of SpaceX and Tesla, standing beside him in the Oval Office, Trump introduced a "workforce optimization initiative" designed to streamline government operations and slash spending across federal departments.
Musk, now heading the newly established Department of Government Efficiency (DOGE), has taken the lead on executing Trump's aggressive cost-cutting agenda. Speaking at the signing ceremony, Musk called the federal bureaucracy an "unelected, fourth, unconstitutional branch of government" and emphasized the importance of transparency and accountability.
Executive Order Highlights: Radical Workforce Reductions
The executive order directs federal agencies to collaborate with DOGE to shrink the federal workforce and limit new hiring to essential positions. Non-essential offices—those without statutory mandates—will be the first targeted for cuts.
The order also introduces a new hiring rule: for every four employees who leave, only one replacement may be hired. Exceptions apply for departments involved in immigration, law enforcement, and public safety.
Buyouts, Furloughs, and Legal Challenges
To expedite workforce reductions, the administration offered buyouts to nearly all 2.3 million federal employees. Although over 60,000 workers accepted the offer, it fell short of the administration's target. With federal employee unions challenging the buyouts in court, a judge in Massachusetts extended a pause on the program earlier this week.
The Trump administration has signaled that furloughs and layoffs are imminent if the buyout participation rate doesn't increase.
New Conduct Standards and Compliance Rules
The Office of Personnel Management (OPM) has been tasked with creating stricter conduct standards for new hires, including citizenship requirements and timely federal tax filing. OPM also requested agency heads to submit reports identifying underperforming employees and potential obstacles to terminating them.
Implications for Key Federal Agencies
Trump's latest actions have already resulted in the shutdown of the United States Agency for International Development (USAID) and steps toward eliminating the Consumer Financial Protection Bureau. The Department of Education could be next, according to Trump's public remarks.
These closures have sparked legal showdowns in federal court, with judges blocking DOGE from accessing Treasury Department payment systems and halting portions of the USAID shutdown. The courts may ultimately decide the scope of the executive authority that the Trump administration claims in its efforts to dismantle federal agencies.
A Shift in Public Perception and Political Dynamics
Musk's involvement has drawn significant media attention and criticism. His private sector ties—especially SpaceX's multi-billion dollar contracts with the Pentagon—raise concerns about potential conflicts of interest. Musk assured reporters that his team's actions will be fully transparent and open to public scrutiny.
Despite these assurances, detractors view DOGE's efforts as an overreach that could gut essential services. Federal employee unions and watchdog groups remain on high alert, filing lawsuits to protect workers' rights and maintain agency operations.
What Comes Next?
As Musk and Trump continue pushing for government downsizing, the courts will play a crucial role in determining how much authority the executive branch has to restructure the federal workforce. Legal challenges are already mounting, and federal workers are bracing for significant changes in the months ahead.
Saluja Law will closely monitor the evolving legal landscape surrounding this executive order. As advocates for due process and administrative law compliance, we stand ready to provide insight and support for those affected by these sweeping reforms.