Regulatory Alert: President Trump Issues Order on Reducing the Federal Workforce
President Trump Issues Order on Reducing the Federal Workforce
February 11, 2025
This afternoon, President Trump issued an executive order directing the White House’s Office of Management and Budget (OMB) and each federal agency, including the Federal Aviation Administration (FAA), to take significant steps to reduce the size of the federal workforce, including preparing for “large-scale” reductions in forces (RIFs) and implementing “hiring ratios” that would only allow an agency to hire one employee for every four that depart. However, the order does provide federal agencies with authority to exempt any position they deem necessary to meet national security, homeland security, or public safety responsibilities. The order is one of several initiatives from the administration aimed at substantially reducing the number of federal government employees.
In terms of potential impacts on airports, we expect that air traffic controllers, Part 139 safety inspectors, other safety-critical positions at FAA, U.S. Customs and Border Protection (CBP) personnel, and certain staff at the Transportation Security Administration (TSA) will be exempt from the hiring ratios and RIFs because these federal workers have not been subject to the administration’s other workforce reduction efforts. However, the order may impact FAA personnel who manage airport-related grant programs, conduct environmental reviews, issue project approvals, and oversee compliance with grant assurances. In addition, it is important to point out that many questions regarding implementation remain unanswered, including when the hiring ratios would take effect and when the RIFs may begin.
Additional details regarding the order, including the status of other workforce reduction initiatives, are provided below. As with many other developments in recent weeks, we will keep members apprised of updates from the new administration that may impact the airport community.
Recap of Workforce Reduction Initiatives. Over the past three weeks, the Trump administration has launched several initiatives to reduce the number of federal government employees, including a temporary hiring freeze, the deferred resignation program, and other more targeted layoffs. The status of some of these initiatives is briefly discussed.
What’s Next? The hiring freeze, deferred resignation program, and plans for hiring ratios and RIFs collectively demonstrate that reducing the size of the federal workforce is a major priority for the new administration. We will be closely monitoring implementation of the order to determine the scope of any exemptions and what, if any, impacts we might see on FAA, TSA, or CBP staffing and the airport community. Relatedly, the administration’s focus on reducing the size of the federal government and deregulation may create opportunities for AAAE and airports to push for regulatory reforms. These are priorities that AAAE will continue to explore with the administration if opportunities arise.
February 11, 2025
This afternoon, President Trump issued an executive order directing the White House’s Office of Management and Budget (OMB) and each federal agency, including the Federal Aviation Administration (FAA), to take significant steps to reduce the size of the federal workforce, including preparing for “large-scale” reductions in forces (RIFs) and implementing “hiring ratios” that would only allow an agency to hire one employee for every four that depart. However, the order does provide federal agencies with authority to exempt any position they deem necessary to meet national security, homeland security, or public safety responsibilities. The order is one of several initiatives from the administration aimed at substantially reducing the number of federal government employees.
In terms of potential impacts on airports, we expect that air traffic controllers, Part 139 safety inspectors, other safety-critical positions at FAA, U.S. Customs and Border Protection (CBP) personnel, and certain staff at the Transportation Security Administration (TSA) will be exempt from the hiring ratios and RIFs because these federal workers have not been subject to the administration’s other workforce reduction efforts. However, the order may impact FAA personnel who manage airport-related grant programs, conduct environmental reviews, issue project approvals, and oversee compliance with grant assurances. In addition, it is important to point out that many questions regarding implementation remain unanswered, including when the hiring ratios would take effect and when the RIFs may begin.
Additional details regarding the order, including the status of other workforce reduction initiatives, are provided below. As with many other developments in recent weeks, we will keep members apprised of updates from the new administration that may impact the airport community.
Recap of Workforce Reduction Initiatives. Over the past three weeks, the Trump administration has launched several initiatives to reduce the number of federal government employees, including a temporary hiring freeze, the deferred resignation program, and other more targeted layoffs. The status of some of these initiatives is briefly discussed.
- Plan for Reduction of Federal Workforce: President Trump signed a memorandum on January 20 aimed at reducing the size of the federal workforce. One primary directive was for OMB to consult with the U.S. Department of Government Efficiency (DOGE) Service and submit a plan to reduce the size of the federal government’s workforce “through efficiency improvements and attrition.” That plan must be submitted by April 20.
- Temporary Hiring Freeze: The January 20 memorandum also imposed a “freeze” on the hiring of federal employees, although exceptions were made for “positions related to immigration enforcement, national security, or public safety.” The hiring freeze remains in effect until OMB submits its workforce reduction plan. We have been informed that air traffic controllers, Part 139 safety inspectors, safety-critical positions at FAA, and CBP personnel have all been exempt from the freeze, with the scope of impacts on TSA personnel less clear.
- Deferred Resignation Program: On January 28, the administration launched the “deferred resignation program,” which allows federal workers to commit to resigning on September 30, 2025, while retaining their pay and benefits and being exempt from all in-person work requirements. About 65,000 employees have exercised the option, according to the administration, but the legality of the program is being considered in federal court. We have been informed that air traffic controllers, Part 139 safety inspectors, safety-critical positions at FAA, and all TSA and CBP personnel are exempt from the program.
- Hiring Ratios: In the January 20 memorandum, President Trump directed OMB to submit a plan no later than April 20 to reduce the size of the federal government’s workforce. The order issued today directs OMB to include a “hiring ratio” limitation in its plan. This ratio would require that each agency only hire one employee for every four employees that depart. The hiring ratio and other policies outlined in the OMB plan presumably would take effect after it is submitted in April and the hiring freeze expires. However, the order does not provide any details on timing.
- Reductions in Force (RIFs): The order directs each agency to “promptly undertake preparations to initiate large-scale reductions in force.” The RIFs must prioritize any “offices that perform functions not mandated by statute or other law,” including (a) any agency diversity, equity, and inclusion (DEI) initiatives; (b) all agency initiatives, components, or operations that the administration suspends or closes; and (c) “all components or employees performing functions not mandated by statute or other law who are not typically designated as essential during a lapse in appropriations” in any agency contingency plan. (Emphasis added.) No details are provided on the timing of the RIFs, as the order only requires that “preparations” be made.
- Hiring Approvals: The order directs each agency to develop a plan, in consultation with DOGE, to ensure new career appointment hires are in the highest-need areas and hiring decisions are made in consultation with DOGE. However, the agency retains the authority to fill vacant positions even if DOGE concludes a position should not be filled.
- Agency Reorganization Plans: The order requires each agency to submit to the OMB a “reorganization plan” that discusses whether the agency or any of its subcomponents should be eliminated or consolidated. These plans are due within 30 days, or by March 13.
What’s Next? The hiring freeze, deferred resignation program, and plans for hiring ratios and RIFs collectively demonstrate that reducing the size of the federal workforce is a major priority for the new administration. We will be closely monitoring implementation of the order to determine the scope of any exemptions and what, if any, impacts we might see on FAA, TSA, or CBP staffing and the airport community. Relatedly, the administration’s focus on reducing the size of the federal government and deregulation may create opportunities for AAAE and airports to push for regulatory reforms. These are priorities that AAAE will continue to explore with the administration if opportunities arise.
