On February 11, 2025, President Trump issued an executive order titled "Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative." This order marks a significant shift in federal workforce policy, particularly for employees in Virginia, home to a large concentration of federal workers.

In addition to the sweeping workforce reductions mandated by the executive order, the Deferred Resignation Program has now been permanently closed, as announced by OPM on February 12, 2025. This means that federal employees who had considered using the program to exit their positions with financial security must now reassess their options amid ongoing reductions in force (RIFs), hiring freezes, and agency restructurings. With the administration accelerating efforts to streamline federal employment, these developments create heightened uncertainty for government workers.

If you are a federal employee in Virginia facing these workforce changes, J. Madison PLC is here to help. Below, we discuss the sweeping changes hitting the federal workforce. And if you need the benefit of competent, experience counsel to help you navigate these changes, contact us today.

Key Changes in the Executive Order

Agencies have been directed as follows:

Strict Hiring Restrictions

  • Federal agencies are now required to follow a 1:4 hiring ratio, meaning for every four employees who leave, only one may be hired.
  • The hiring freeze remains in place for the Internal Revenue Service (IRS).
  • New hires will be prioritized only for "highest-need areas," and decisions will be made in consultation with each agency’s Department of Government Efficiency (DOGE) Team Lead.

Large-Scale Reductions in Force (RIFs)

  • Agencies must initiate RIFs to downsize their workforces.
  • Temporary employees and reemployed annuitants are first in line for separation.
  • Offices and programs not mandated by statute—including all diversity, equity, and inclusion (DEI) initiatives—are explicitly prioritized for elimination.
  • RIFs will be implemented according to existing federal workforce reduction policies and procedures.

Stricter Employee Suitability Requirements

OPM will amend 5 C.F.R. 731.202(b) to include new suitability criteria, such as:

  • Failure to file tax returns on time.
  • Non-compliance with federal employment eligibility requirements (e.g., citizenship issues).
  • Refusal to comply with nondisclosure obligations.
  • Misuse or negligent loss of government resources.

Agency Reorganizations & Eliminations

  • Agencies must submit reports identifying whether certain components or entire agencies should be eliminated or consolidated.
  • Offices deemed non-essential in contingency plans for government shutdowns will be heavily scrutinized for closure.

Implications for Virginia Federal Employees

Virginia employees should note the following:

Federal Employees at Risk

For federal workers in Virginia, particularly those in agencies with extensive DEI programs or non-essential operational components, this order signals potential job losses or reassignments. Employees in temporary roles or those eligible for severance packages should start evaluating their options now.

Hiring Freezes Will Limit Career Mobility

The 1:4 hiring ratio and agency hiring freezes will make transferring to new positions within the federal government significantly harder. Employees considering career moves may need to act swiftly before further restrictions tighten employment mobility.

Severance Pay & Retirement Planning

With large-scale RIFs on the horizon, employees must understand their severance and retirement options:

  • RIF-Severed Employees may qualify for severance pay but will lose it if they return to federal employment (5 C.F.R. § 550.712).
  • Severance benefits are generally governed by 5 U.S.C. § 5595 and 5 C.F.R. Part 550, Subpart G, outlining eligibility and payment calculations.
  • The executive order does not mention Voluntary Early Retirement Authority (VERA), and there is no indication whether early retirement incentives will be offered as part of the workforce reduction as they were with the now-closed deferred resignation program.
  • Employees considering RIF versus retirement should review 5 U.S.C. §§ 8336(d) or 8414(b) for early retirement eligibility.

Deferred Resignation Program Permanently Closed

Previously blocked by a court ruling, the Deferred Resignation Program is now permanently closed, per an update from OPM on February 12, 2025. Any resignations submitted after 7:20 PM ET on February 12, 2025, will not be accepted. Employees who were considering this option must now evaluate alternative exit strategies, such as RIF-based severance or retirement options.

What Comes Next?

  • OPM must issue new suitability regulations within 30 days.
  • Agencies will submit restructuring plans within 30 days.
  • The U.S. DOGE Service Administrator will provide an implementation report in 240 days, potentially leading to further modifications.

Final Thoughts

This executive order underscores the Trump administration’s aggressive push to reshape the federal workforce. While framed as an efficiency initiative, the reality is that thousands of federal employees—particularly those who live in Northern Virginia communities like Arlington, Fairfax, Loudoun County, Alexandria, Falls Church, —face uncertain futures. The next few months will be critical for employees weighing career decisions, severance options, and retirement planning.

For Virginia’s federal workforce, staying informed and prepared is essential. If you have questions about how this order affects your employment status, legal rights, or career options, contact us today.