The U.S. Office of Management and Budget (OMB) and Office of Personnel Management (OPM) issued a memorandum Wednesday to federal agency heads, outlining steps to implement President Donald Trump’s “Department of Government Efficiency” (DOGE) Workforce Optimization Initiative.
Signed by OMB Director Russell T. Vought and Acting OPM Director Charles Ezell, the document calls for agencies to submit detailed reduction-in-force (RIF) and reorganization plans by March 13, following Trump’s February 11 executive order aimed at streamlining federal operations.
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The memo frames the federal government as expensive, inefficient, and heavily indebted, asserting that it fails to deliver adequate results for the public.
It ties the directive to the 2024 election, noting Trump’s victory on November 5 as a public endorsement of his pledge to reform federal operations.
The executive order mandates agencies to cut “waste, bloat, and insularity” to improve services and empower taxpayers, with specific instructions to prepare for significant staff reductions and reorganizations.
Agencies are instructed to develop Agency RIF and Reorganization Plans (ARRPs) in two phases. Phase 1, due March 13, focuses on immediate cuts, targeting non-statutory functions and identifying competitive areas for reductions based on 2019 contingency plans from past shutdowns. Phase 2, due April 14, outlines long-term restructuring, including new organizational charts, potential office relocations, and a hiring ratio of one new employee per four departures. Goals include better public service, higher productivity, fewer staff, smaller real estate holdings, and lower budgets.
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The guidance encourages agencies to consolidate overlapping roles, reduce management layers, adopt automation, and close or merge regional offices where feasible. It also advises minimizing reliance on contractors and renegotiating collective bargaining agreements that hinder efficiency. All actions must align with statutory authority, and agencies are directed to collaborate with their DOGE team leads.
The memo lists several methods for achieving reductions: maintaining the January 20 hiring freeze, leveraging attrition, terminating underperformers or temporary positions, and executing large-scale RIFs. A sample timeline in Appendix 1 suggests steps like identifying target areas by March 13 and completing separations within months, with options to expedite via OPM waivers. Agencies must detail expected staff cuts, contract cancellations, and cost savings for fiscal years 2025-2027.
Certain areas are exempt: law enforcement, national security, border security, military personnel, presidential appointees, and the U.S. Postal Service. For agencies handling direct citizen services—like Social Security, Medicare, and veterans’ care—cuts require OMB and OPM certification that service quality won’t decline. Monthly progress reports are due through July.
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The directive reflects Trump’s broader push to shrink federal spending and staff, a priority amplified by DOGE, which operates under informal leadership from Elon Musk.
Supporters see it as a necessary correction to years of unchecked growth; critics warn of disruptions to essential services and job losses.
With plans set to roll out by September 30, the initiative could reshape federal operations significantly, though its success hinges on agency execution and congressional cooperation for major restructuring.
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