Full Breakdown
Federal Workforce Cuts Lead to Backfills and Asset-Recovery Gaps
8/28/2026, 2:42:16 AM
Deferred Resignation Program and Workforce Reductions
The Trump administration’s effort to trim the civil service removed more than 300,000 employees in a single year. Roughly 41 % of those separations occurred through the Deferred Resignation Program (DRP), which placed participants on paid administrative leave until their official exit dates, typically in September 2025.
Backfilling of Positions Across Agencies
A Partnership for Public Service analysis released in August found that, by June 2026, nearly 20,600 hires filled the same agency subcomponents and occupational series as workers who left under the DRP. The study highlighted that many of these hires occupied lower-grade roles; on average, new employees were about 1.4 General Schedule (GS) grades below the individuals they replaced. In the FBI’s “criminal investigation” series, the grade gap was even larger—approximately 3.1 grades.
OPM Director Scott Kupor disputed the methodology, arguing that the job classifications used were too broad to serve as a reliable proxy for backfills. He noted that only about 15 % of DRP separations were replaced, interpreting the figure as evidence that the majority of reductions were permanent.
IRS Asset-Retrieval Shortfalls
A Treasury Inspector General for Tax Administration (TIGTA) report covering April through July 2025 identified roughly 22,000 IRS employees who left through voluntary separations, the DRP, or other incentives. Those departing were assigned more than 32,000 information-technology assets. While most items were returned, 1,308 assets (4 %) remained unaccounted for as of November 2025, and by April 2026 the agency still could not locate 594 assets—laptops and smartphones valued at over $270,000.
TIGTA found that IRS policy required asset return but lacked a specific time frame and did not provide a mechanism for recovering costs from non-returning employees. The agency’s chief information officer, Kaschit Pandya, acknowledged the policy gaps and said the IRS would update procedures, strengthen retrieval processes, and improve audit-trail integration, though enforcement remains limited when individuals do not comply.
Policy Implications and Next Steps
Both reports underscore challenges in achieving lasting workforce reductions while maintaining operational continuity and asset accountability. The Partnership analysis suggests that backfilling at lower grades may dilute the intended cost savings, whereas the TIGTA findings reveal vulnerabilities in asset management that could expose the Treasury to financial loss and security risks. The IRS has agreed to implement TIGTA’s four recommendations, including establishing clear return timelines and enhancing audit-trail monitoring. Meanwhile, OPM officials emphasize the need to develop early-career talent to sustain agency capabilities despite the reductions.
