Interview transcript:

Terry Gerton There’s a lot to talk about, but it strikes me as strange that here we are two weeks before all of the continuing resolutions expire. The Senate is out this week. The House is planning to be out next week. Are they going to finish in time?

Loren Duggan There’s a path for them to do so and unlike other deadlines, when they’re approaching, everyone’s hair on fire — we haven’t felt that dynamic on this one. The House and Senate appropriators, they’re reaching deals, releasing packages, processing them through the House in the Senate, and there’s a way to get this all done by Jan. 30, or if they need a week or something, appropriators are already saying we could do another short-term. But there’s not a panic about this deadline that’s only two weeks away or so.

Terry Gerton Well, let’s recap, which bills are through and who would you say are the big winners in those bills?

Loren Duggan So we had the three bills go through last year. We’ve had another three-bill package get through both chambers this year. The House sent another two-bill package over to the Senate, who can deal with that when they come back. And then there’s this four-bill package, the remaining outstanding ones that they still need to tackle and get through both chambers. So there’s a lot of progress there. The last one’s big — Defense, Labor, HHS — and thorny in the case of the Homeland Security Department, given everything that’s going on there with ICE in Minnesota and concerns about lawmaker oversight there.

Terry Gerton Well, Homeland and Defense both got big chunks of money in the summer that they’re continuing to operate. So does it feel like maybe there’s a little less urgency around those bills?

Loren Duggan A little less urgency on the Defense side, where I think if you put that together with the reconciliation bill, it’s like $1 trillion. Of course, the president wants to take that to $1.5 trillion next year. We can deal with that another time. And Homeland, that extra pool of money has helped. They’ve used that to hire staff, to open centers. But there was a little controversy because DHS said if an ICE facility is funded with the reconciliation dollars, some of the oversight is different there than if it was regular appropriations. So we’ve seen a distinction made there. But definitely having that money earlier, locking that in for the administration, was really key to their plans for the year.

Terry Gerton What are the big controversies that are still on the table that are going to have to be hashed out before that last bill package gets through?

Loren Duggan DHS has been the sticking point. That was initially supposed to be in the last package; it ended up only being two bills instead of three as they worked through some of these discussions. And you could see a deal being made there and getting that through, maybe both chambers. But there could be a fight on that one in either chamber, depending on what you need. What we have seen are very bipartisan packages where the votes have been widespread, some opposition obviously, but they’ve gotten through very comfortably after all the fights that we went through ahead of this point in time.

Terry Gerton It does also seem, at least on the bills that have gotten through so far, that Congress has largely rejected the cuts that the administration proposed for 50% reductions are higher. Most of the reductions are very minor. So since agencies have already been downsized in many cases, what does this mean? How will relative increases, I guess, compared to where they’re operating today — how will that come into effect?

Loren Duggan In some cases, it’s less than they had last year, but still more than the administration wanted and more than House Republicans wanted in their initial versions. So we’re seeing a classic compromise being hashed out here between the House and the Senate, enough money for Democrats to support these bills, not the drastic cuts. And they’ve hastened to say “no poison pills” when they’ve released these different packages. But we’ll see how the agencies respond to more money. That’s been a fight over the course of the administration, where they’ve wanted to impound funds, rescind them, but if you put them back out there the agencies can use them. And even something like foreign aid is going to the State Department now, rather than USAID, after USAID was disestablished by the administration.

Terry Gerton I’m speaking with Loren Duggan. He’s deputy news director for Bloomberg Government. Loren, outside of the appropriations, what other sorts of legislative discussions are taking place on the Hill these days? ACA subsidies still on top?

Loren Duggan ACA subsidies has been a big driver of discussion. We are now at the end of open enrollment without an answer to what to do with these credits, if they’ll be extended. I assume the senators are still talking this week and when they come back. Donald Trump’s proposal last week didn’t necessarily change the dynamic too much. But one thing that might: We’re going to see insurance company executives brought to the Hill before two different House committees this week. They’ll have to answer some tough questions. Probably get a little beaten up by both sides in this case, because both parties have some concerns with them. So we’ll see how that plays out. The ACA, that’s now a deadline that’s passed; they’re still trying to figure out how to resolve that debate.

Terry Gerton There was also a lot of news last week about the crypto bill in the Senate. Tell us what’s going on there.

Loren Duggan There were markups that had been scheduled in two committees, and then they got pulled back as they continue to work through the issues and deal with the industry feedback. I think it was the Coinbase CEO who was up there weighing in pretty directly with lawmakers. So they pulled back, didn’t move forward, and they’re going to recalibrate the bill. This is the market structure bill, not to be confused with the stablecoin legislation, which is part of the crypto universe. This is a broader market structure bill, who has regulatory authority. I assume they’ll rejoin that debate when they return next week, if they’re not working up while they’re gone. But there’s big interest, big money, big stakes in this legislation.

Terry Gerton All of the things we’ve talked about so far are sort of normal order: appropriations bills, although late, getting through other sorts of legislative activities. Let’s talk about Greenland for a minute, because it seems like it has the potential to really upend all kinds of conversations and agreements that are going on. President Trump made tariff threats over the weekend. We have a congressional delegation on the ground in Denmark. What does this all mean when it comes back to domestic politics?

Loren Duggan We’ll have to see, there hasn’t been a ground swell against this. There are some members of Congress who concede it might be a good idea if Greenland was part of the United States, given its geostrategic importance. But then there’s other members of Congress who have said, maybe we’ll have to impeach Trump if he goes too far on this, so there’s not a consensus. There’s definitely a lot of range of opinions on this one. And it’s something that Donald Trump’s going to hear directly from other world leaders when he goes to Davos, Switzerland, this week and he’ll be side-by-side with some of the people who he’s threatened to tariff or have strong opinions on this, given their proximity to Denmark.

Terry Gerton We usually focus here on domestic politics, but this seems like it will flow over into lots of conversations. What are you expecting to hear out of Davos as that conversation gets started?

Loren Duggan Well, we had expected a domestic announcement with the president talking about his home ownership plan, maybe taking money from 401(k)s to make a down payment, part of his broader affordability discussion, home ownership discussion. So that’s a domestic thing, but we’re definitely going to hear the global things. Not just Greenland, but his “Board of Peace” that he’s talked about, where he wants world leaders to chip in money and be part of this arrangement. I’m sure those discussions will continue and there’ll be lots of feedback, given the compact nature of Davos and everyone who will be there. There’s a little bit of domestic, but it’s more of a foreign play given who’s there. It is the World Economic Forum after all, and the world will be there and talking to Donald Trump directly.

Terry Gerton When everybody gets back, what will you be watching for on the Hill?

Loren Duggan We’ll see if they can wrap up the spending debate and then they’ll be turning to February and eventually the fiscal ’27 process is right there. We’ll just get done with this one and really have to turn the page pretty quickly.

The post Crypto overhaul, Greenland, ACA subsidies, spending bills: Lawmakers’ January juggling acts first appeared on Federal News Network.

As a tumultuous year for the federal workforce comes to a close, many employees are in a much different position now than they were at the start of 2025.

The Trump administration’s efforts to reduce staffing across agencies resulted in the loss of more than 317,000 federal employees governmentwide. It’s a 13.7% decrease compared with September 2024 workforce numbers, Office of Personnel Management data shows.

At the same time, 68,000 new federal employees joined the civil service during 2025, according to OPM Director Scott Kupor. Combining both attrition and hiring data, the administration’s changes over the course of 2025 amounted to a net staffing decrease of about 10.8%.

Kupor touted the results as exceeding the administration’s goals, saying relatively few losses were due to reductions in force (RIFs) and firings of probationary employees. Out of all employees who left their jobs in the last year, “over 92% did so voluntarily,” he said, mainly via the deferred resignation program (DRP).

“None of this is to minimize the impact of anyone losing a job, but the ‘mass firing’ headlines do not in fact tell the full story,” Kupor wrote in a Dec. 10 post on X.

But some federal workforce experts argue that the administration’s reductions in 2025 amounted to a “forced exodus.” Max Stier, president and CEO of the Partnership for Public Service, pointed to what he said have become “dangerous gaps” in key federal services, like food safety inspection, Social Security processing, veterans’ healthcare and disaster response.

“This loss of expertise directly harms Americans’ access to critical services and will take decades to repair,” Stier told Federal News Network.

Rep. James Walkinshaw (D-Va.) also pushed back against the idea of the administration’s DRP being “voluntary.” He said many feds who left government felt they had no choice — they felt threatened they would be fired anyway, if they did not leave through the DRP.

“Federal workers were hit with DOGE, watched agencies shutter, were threatened with imminent reductions in force, demagogued and bombarded with those mindless ‘5 things’ emails,” Walkinshaw said Dec. 11. “Nothing about that was voluntary — the ‘fork in the road’ was coercion.”

Still, the workforce cuts so far align with the Trump administration’s overall goal to “downsize the federal workforce,” as the Office of Management and Budget recently laid out in the new President’s Management Agenda. Specifically, the administration said it is targeting cuts of “unnecessary positions” and “poor performers,” while emphasizing more efficiency.

“We’ve seen significant success in right-sizing the federal workforce and addressing performance issues,” Eric Ueland, OMB’s deputy director for management, said during a Dec. 9 Chief Human Capital Officers (CHCO) Council meeting.

The workforce reductions hit some agencies harder than others. The top three agencies facing staffing reductions are the departments of Defense, Agriculture and Treasury — with Treasury’s reductions mostly concentrated within the IRS, according to research from the Partnership for Public Service.

By scale, DoD has seen the largest staffing reduction across government. The department lost over 61,600 employees during 2025 — a total of about 8% of its total workforce.

Following just behind DoD, the Treasury Department lost more than 31,600 employees, yielding a staffing reduction of nearly 28%.

And at USDA, the loss of more than 21,600 employees over the last year amounted to a roughly 22% staffing decrease overall.

But other agencies, such as USAID and the Education Department, saw even deeper cuts to their workforces, despite being smaller agencies by volume.

Governmentwide, the loss of more than 300,000 federal employees has shown up in a multitude of ways. At the IRS, for instance, an agency watchdog warned there will likely be issues with the 2026 tax filing season, as a direct result of the 25% cut to the IRS workforce. And at USDA, the staffing reductions are affecting the work of some of the department’s underlying agencies.

The Partnership for Public Service said the cuts are harming communities as well. An analysis of more than 530 stories on the federal government throughout 2025 shows the impacts of the federal workforce reductions across the country.

“Notably, more than 45% of these stories involve harms to science-related sectors, including agricultural research, healthcare and public land management,” the Partnership said. “Together, they show the direct, tangible consequences these changes are having on individuals, organizations and communities.”

Over the course of 2025, the impacts also continued to spread. In a survey the Partnership conducted in September, 46% of respondents said they or someone they know had been impacted by the government cuts. That’s up from 29% of respondents who said the same in March.

Still, there are many who view the Trump administration’s changes positively. About 80% of those who are supportive of the federal workforce overhauls said they believe the changes will make their communities and lives better, the Partnership’s September survey found. But even among those who were supportive of the changes, 41% still expressed concerns about a loss of experience and knowledge in the federal workforce in the short term.

The changes are impacting many who have stayed in their jobs as well. Federal employees are experiencing disruptions in the workplace at a rate far higher than the national average, according to a recent Gallup survey.

Close to one-third — about 29% — of federal employees say their workplace has been disrupted “to a very large extent.” That’s nearly triple the 10% of U.S. employees who say the same, Gallup found. Across the federal workforce, it’s leading to increases in stress and loneliness, as well as a decline in employee engagement.

Robert Shea, a federal workforce policy expert and former OMB official from the George W. Bush administration, said the workforce changes have had a “chilling effect” on leaders across the career civil service — something he believes will continue into 2026 and beyond.

“Many career officials are now more cautious about how, when and whether they offer professional advice,” Shea told Federal News Network. “That’s particularly when that advice could be perceived as resistance rather than implementation.”

The post How staffing cuts in 2025 transformed the federal workforce first appeared on Federal News Network.