Trump Cuts Federal Workforce, Aims to Sell Off Properties

Mar. 8, 2025, 6:47 am ET

Instant Insight

30-Second Take

  • The Trump administration’s Department of Government Efficiency (DOGE) is spearheading a massive reduction in federal real estate and workforce.
  • DOGE aims to shed up to a quarter of the federal government’s 360 million square feet of real estate.
  • Thousands of federal jobs are at risk, including critical positions in agencies like the IRS, Bureau of Prisons, and Social Security Administration.

+ Dive Deeper

Quick Brief

2-Minute Digest

Essential Context

The Department of Government Efficiency, tasked by President Trump to reduce government costs, is taking drastic measures. This includes ending leases on non-core properties and laying off thousands of federal employees. The General Services Administration (GSA) is overseeing the sale of hundreds of federally owned properties, aiming to optimize the federal real estate footprint and save taxpayer dollars.

Core Players

  • Donald Trump – President of the United States
  • Department of Government Efficiency (DOGE) – Agency tasked with reducing government costs
  • General Services Administration (GSA) – Agency responsible for federal real estate management
  • Elon Musk – Influential figure associated with DOGE’s operations

Key Numbers

  • 360 million square feet – Total federal real estate space, with up to a quarter slated for reduction
  • 440 federally owned properties – Targeted for disposal by GSA
  • $8.3 billion – Recapitalization needs for non-core assets
  • 62,530 – Federal workers laid off in the first two months of the year
  • 7,000 – USAID employees placed on leave or fired

+ Full Analysis

Full Depth

Complete Coverage

The Catalyst

The Trump administration’s drive for efficiency, spearheaded by DOGE, has led to a comprehensive review of federal assets and workforce. This initiative is part of a broader effort to cut government spending and streamline operations.

“The goal is to bring federal employees back to high-performing office spaces throughout the country and drive maximum value for the federal real estate footprint for the benefit of the American taxpayer,” according to a GSA spokesperson.

Inside Forces

DOGE’s actions have resulted in mass layoffs across multiple government agencies. Recently hired employees and those on probation have been particularly affected, with termination emails sent out en masse. The Department of Education, FDA, and CDC are among the agencies hit hard by these layoffs.

The Department of Government Efficiency has also targeted the Social Security Administration, though with relatively fewer layoffs compared to other agencies. However, the SSA faces significant changes, including the closure of local offices and potential outsourcing of call center jobs.

Power Dynamics

Elon Musk’s influence on DOGE’s operations has been significant, with his allies promoting a “cut-first-fix-later” philosophy. This approach has led to rapid changes within various federal agencies, often without thorough consideration of long-term impacts.

President Trump’s support for these measures has been consistent, reflecting his administration’s commitment to reducing government size and expenditure.

Outside Impact

The broader implications of these cuts are far-reaching. Local communities are concerned about job losses and the impact on critical services. For instance, the closure of IRS and Bureau of Prisons facilities in Stockton could affect thousands of residents.

In Indiana, the potential sale of key federal buildings, such as the Major General Emmett J. Bean Federal Center and the Minton-Capehart Federal Building, has raised alarms among local officials who underscore the importance of these facilities to regional services.

Future Forces

As the GSA continues to identify and dispose of non-core properties, the landscape of federal real estate and employment is likely to change dramatically. The agency may adopt expedited processes for selling these properties, which could include creative solutions like sale-lease backs and public-private partnerships.

The long-term effects on federal services, particularly those affecting vulnerable populations, remain a concern. Water officials in the Central Valley are warning against the loss of critical personnel at the Bureau of Reclamation, which could impact public health and safety.

Data Points

  • March 4, 2025: GSA announced its intention to dispose of hundreds of federally owned properties.
  • February 12, 2025: Federal workers’ buyout offer expired, leading to widespread layoffs.
  • February 14-15, 2025: Layoffs began at the FDA and CDC.
  • $468 million: Annual savings expected from ending leases at targeted facilities.
  • 64 facilities: Targeted in California for closure or sale.

The ongoing efforts by DOGE and the GSA to reduce government spending and optimize real estate usage mark a significant shift in federal operations. As these changes unfold, they will likely have profound impacts on both federal employees and the services they provide.