President Trump issued an executive order titled “Implementing the Department of Government Efficiency (DOGE) Workforce Optimization Initiative,” which gives the following directives:  

• Reductions in the federal workforce: Agency heads are directed to develop plans that institute large-scale reductions in the federal workforce. The executive order directs agency heads to prioritize the reduction of positions that functions are “not mandated by statute or other law.” The executive order specifically calls out agency diversity, equity, and inclusion initiatives as an example.
• Hiring Ratios: The executive order directs that these reduction plans should require agencies to hire no more than one employee for every four employees that depart. These hiring ratios do not apply to positions related to public safety, immigration, or law enforcement. The executive order reaffirms the indefinite hiring freeze for the Internal Revenue Service.  
• Hiring Approval: Agency heads will need to consult a DOGE team lead before hiring for a position. The executive order states that an agency cannot hire for a position that DOGE team views as unnecessary, unless the Agency head overrules DOGE.    

The executive order does not apply to military personnel and agency heads may exempt positions that they deem “necessary to meet national security, homeland security, or public safety responsibilities.”  

Impact: This executive order impacts the more than 2 million civilian federal workers that provide essential government services, such as administering Social Security payments, conducting health and safety inspections, and producing quality economic data. A large-scale reduction in the workforce could create a disruption in such services, due to a loss in capacity and subject matter experts.