Federal Agency Cuts 2025-2026, Ranked: Who Lost the Most
Ranked: which federal agencies cut the most jobs in 2025-2026. USAID lost ~97%, IRS ~30%, VA ~27,000. Headcount, percentages, and sources by agency.
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Federal Agency Cuts 2025-2026, Ranked: Who Lost the Most
Last Updated: June 17, 2026 Reading Time: 9 min
The federal workforce shrank by at least 278,000 employees between January 2025 and April 2026, the steepest reduction in modern history. But the federal agency workforce cuts were not spread evenly. Some agencies lost a few percent through attrition. Others were gutted. This is the ranked breakdown of which agencies were hit hardest, with headcounts, percentages, mechanisms, and sources for each.
Key Takeaways
- USAID is a category apart: it was effectively dissolved, dropping from roughly 10,000-12,000 U.S. direct-hire staff to about 15 people.
- Among agencies that still function, the Education Department (about 47-51%) and the IRS (about 27-30%) saw the deepest proportional cuts.
- VA and HHS led in raw numbers: VA shed roughly 27,000-40,000 employees, HHS about 20,000.
- Governmentwide, OPM data shows a net loss of about 278,000 employees, putting the federal civilian workforce near its lowest level since the 1960s.
- Most departures were voluntary (the Deferred Resignation Program), not firings. That distinction changes your severance, pension, and FEHB eligibility.
How Federal Agencies Were Hit, Ranked
The table below ranks agencies by reduction. Figures are reconciled from OPM workforce data, agency announcements, Inspector General reports, and reputable reporting. Where counts are contested or not yet executed, the table says so. "Net cut" reflects separations minus court-ordered reinstatements where they apply.
| Agency | Starting Headcount | Net Cut | % Reduction | Primary Mechanism | As of |
|---|---|---|---|---|---|
| USAID | ~10,000-12,000 | ~9,985-11,985 | ~97-99% | Shutdown + mass termination | Mar 2026 |
| Education Dept | ~4,100 | ~1,950-2,100 | ~47-51% | DRP + probationary + RIF | Mar 2026 |
| SBA | ~6,200 (est.) | ~2,700 | ~43% | DRP + RIF | 2025 |
| CFPB | ~1,750 | ~584 now (two-thirds court-pending) | ~33% now | RIF, pending injunction | Apr 2026 |
| IRS | ~102,000 | ~27,300-31,300 | ~27-30% | DRP + probationary + RIF | Mar 2026 |
| NPS (Interior) | ~17,000 | ~4,000 | ~24% | DRP + probationary + RIF | 2025 |
| HHS (total) | ~82,000 | ~20,000 | ~24% | DRP + VERA + RIF | Jul 2025 |
| CDC | ~13,674 | ~3,000-3,500 | ~22-25% | RIF (4 waves) + DRP | Oct 2025 |
| EPA | ~16,155 | ~3,700 | ~23% | DRP + VERA + RIF | 2025-26 |
| NASA | ~17,391 | ~4,000 | ~23% | DRP + VERA + VSIP | Late 2025 |
| State Dept | ~13,000 | ~2,860 | ~22% | RIF + voluntary | 2025 |
| SSA | ~57,000-58,000 | ~7,150-8,000 | ~13% | DRP + attrition | Jan 2026 |
| VA | ~468,000 | ~27,000-40,000 | ~6-9% | DRP + attrition (83K RIF walked back) | Jan 2026 |
| DoD Civilians | ~760,000 | ~21,000 confirmed (goal up to 61,600) | ~3-8% | DRP confirmed; more targeted | Early 2026 |
| USDA | ~100,000 (est.) | ~2,300+ | ~2-4%+ | DRP + hiring freeze | Apr 2026 |
A few entries need context that a single row cannot carry.
USAID is not on a spectrum with the others. It was effectively eliminated as a standalone agency, not trimmed. Treat its 97 percent figure as a different kind of event.
CFPB is the one to watch. The agency is currently down about 33 percent, to roughly 1,166 employees. The widely reported "two-thirds" cut to 556 staff is pending a court ruling as of June 2026 and is not yet in effect.
VA is genuinely contested. A Democratic caucus report counted 40,000 departures; VA's own figures and Federal News Network tracking show closer to 27,000-30,000 net. The gap largely reflects how Title 38 clinical staff are counted versus Title 5 civil service. The administration originally floated an 83,000-position cut, then walked it back and used attrition and voluntary exits instead.
DoD ranges from 21,000 confirmed DRP departures to a stated goal of up to 61,600 across all mechanisms. The 21,000 is the verified number; the higher figure is a target, not an achievement.
The Governmentwide Picture
No single number captures the full reduction, because different sources measure different things.
| Metric | Figure | Timeframe |
|---|---|---|
| Net payroll reduction (OPM) | ~278,256 | Jan 2025 - Apr 2026 |
| Total separations (OPM Nov report) | 317,000+ | Through Nov 2025 |
| All departures incl. attrition | ~385,000 | Jan 2025 - Jan 2026 |
| Formal RIFs | ~17,000 | Through Dec 2025 |
| DRP participants | ~123,000-137,000 | Through Sep 2025 |
| Current federal headcount | 2,028,138 | Feb 2026 |
The key distinction: the 278,000 figure is the net change in payroll. The 385,000 figure includes normal annual attrition, which runs roughly 100,000-120,000 in a typical year. The reduction directly attributable to 2025-2026 policy, above normal turnover, is roughly 150,000-200,000. No single official source isolates that number cleanly, so treat any precise "DOGE cut" count with caution.
RIF, DRP, Buyout: Why the Mechanism Matters
How an agency cut staff determines what those employees walked away with, and whether you have any recourse. These terms are not interchangeable.
| Method | What It Means | What You Get |
|---|---|---|
| DRP (Deferred Resignation) | "Fork in the Road" offer: agree to a future resign date for paid leave now | Voluntary. Keep pay and benefits through the paid period. No severance. |
| RIF (Reduction in Force) | Formal process: 60-day notice, retention register, bump and retreat rights | Involuntary. Severance if not retirement-eligible, plus reemployment priority. |
| VERA (Early Retirement) | Early out at age 50 with 20 years, or any age with 25 | Voluntary. Pension starts immediately. FEHB continues if you meet the 5-year rule. |
| VSIP (Buyout) | Cash incentive, up to $25,000 at most agencies, $40,000 at DoD | Voluntary lump sum, taxable. Repay it if you return to federal service within 5 years. |
| Probationary firing | Removal during the 1-2 year probation period | Involuntary, no MSPB appeal. Many were court-challenged and some reinstated. |
The practical takeaway: most of the 278,000 left voluntarily through the DRP. That matters because voluntary separations do not qualify for federal severance, and the choice between a buyout and a RIF changes your math significantly.
The Rehiring Asterisk
Several agencies started hiring after the initial waves, which complicates the final percentages. Rehiring does not undo the cut. New hires are usually different people in different roles.
| Agency | Rehiring Status |
|---|---|
| IRS | ~2,200 seasonal hires for the 2026 filing season; net still down ~27% |
| HHS | Announced hiring 12,000 to replace 20,000 lost; new roles, different priorities |
| NIOSH | Full reinstatement of ~1,000 employees in January 2026 |
| CFPB | Court injunction limited further cuts; little new hiring |
HHS is the clearest example. The 12,000 planned hires are not the 20,000 people who left, and they are directed toward new priorities. The headline reduction stands even as the raw count partially recovers.
Calculate Your Severance
If your agency was on this list and you were separated through a formal RIF, you may be owed severance pay. The amount depends on your years of service and age. Use our free Severance Pay Calculator to estimate what you are entitled to before you accept anything. Calculate your severance now.
If you are weighing a buyout or early-out offer instead, the VERA/VSIP Decision Calculator and VERA Eligibility Checker can run the numbers on your specific situation.
Frequently Asked Questions
Which federal agency cut the most employees in percentage terms in 2025-2026?
USAID lost effectively 97 to 99 percent of its direct-hire U.S. workforce, dropping from roughly 10,000-12,000 employees to about 15 remaining staff. Among agencies that still operate normally, the Education Department lost roughly 47 to 51 percent, and the IRS cut about 27 to 30 percent. The CFPB is awaiting a court ruling that could result in a two-thirds reduction.
How many total federal workers have been cut since January 2025?
OPM workforce tracking data shows a net reduction of about 278,000 federal employees from January 20, 2025 through April 2026. A broader count of all departures, including normal retirements and attrition, reaches about 385,000 through January 2026. Formal RIF notices went to roughly 17,000 employees through December 2025. Most departures were voluntary through the Deferred Resignation Program.
Is the IRS really down 30 percent? I heard they are hiring people back.
The Treasury Inspector General confirmed IRS cuts reached 30 percent before backfilling began. The current net reduction is about 27 to 28 percent, from roughly 102,000 to 75,700 employees per the National Taxpayer Advocate. The IRS added about 2,200 seasonal employees for the 2026 filing season, but rehiring has been limited to specific areas, and the FY2027 budget proposes cutting another 4,000 positions.
If my agency cut people, am I automatically eligible for severance pay?
Not automatically. Federal severance pay applies to involuntary separations through a RIF when you are not eligible for an immediate retirement annuity. Employees who took the DRP, VERA, or VSIP voluntarily do not receive additional federal severance. If you were formally RIF'd, the basic formula is one week of pay per year for the first 10 years, plus two weeks per year above 10, with an age adjustment.
Which agencies are still cutting in 2026?
As of mid-2026, active reductions include the Navy's September 30, 2026 organizational review covering its civilian workforce, the CFPB's court-pending two-thirds cut, the IRS FY2027 budget proposing another 4,000 positions, and the USDA FY2027 budget projecting a 25 percent drop in Farm Service Agency staffing. The cuts are not over.
Related Resources
- RIF Survival Guide 2026: What to do if your agency is reducing staff
- Agency RIF Risk Ranking 2026: Which agencies are most at risk going forward
- Federal Workforce Lowest Since the 1960s: The governmentwide context
- DRP Deferred Resignation: The $4 Billion Cost: How the buyout program worked
- IRS Workforce Cuts: The IRS reduction in detail
- Federal Rehiring After DOGE Cuts: Which agencies are bringing people back
Sources
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