The federal civilian workforce across 22 of 24 major federal agencies decreased from 2.27 million to 2.01 million employees between December 2024 and January 2026, according to a report by GDELT. The net reduction of 256,000 federal employees resulted from 378,000 separations offset by 127,000 new hires. Chris Edwards estimated that these workforce reductions saved taxpayers approximately $41 billion annually. The Government Accountability Office stated that new hires do not inherently mitigate the effects of separating employees on an agency's ability to meet its mission or financial obligations.

In parallel developments, the Trump administration terminated more than 1,300 workers at the U.S. Department of Education, which has approximately 4,400 employees and an annual budget of $79 billion. The administration also transferred billions in grant programs, including the $18-billion Title I program, from the Department of Education to other federal agencies such as the Department of Labor. Critics warned of disruption to services; officials argued the changes would boost efficiency.

Twenty state attorneys general and the District of Columbia filed a lawsuit against the Trump administration, President Donald Trump, Secretary of Education Linda McMahon, and the U.S. Department of Education. The state AGs characterized the layoffs as an effective dismantling of the Department. They argued that the Department's authority to administer reductions does not override Congress's authority to abolish agencies. The administration can starve the Department by cutting resources, the AGs noted.

Individual impacts were highlighted by Allison Hassett Wohl, who received a termination letter from the U.S. Department of Health and Human Services. Hassett Wohl expressed fear regarding the government. The U.S. Department of Education was established in 1979 via the Department of Education Organization Act of 1979.