Federal Hiring Frozen—Except IRS: Workforce Shrinkage Plan Incoming
Published Date: 1/28/2025
Presidential Document
Summary
Starting January 20, 2025, the government is hitting pause on hiring new federal civilian workers across most agencies to save money and boost efficiency. Some jobs, like military, national security, and public safety, are still open. A plan to shrink the workforce will come in 90 days, but the IRS hiring freeze sticks around until further notice.
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Analyzed Economic Effects
7 provisions identified: 3 benefits, 4 costs, 0 mixed.
Core Benefit Programs Protected
The memorandum says nothing in it shall adversely impact the provision of Social Security, Medicare, or Veterans' benefits. If you receive those benefits, the order protects continued delivery of those programs.
OMB Must Propose Workforce Reduction Plan
Within 90 days of January 20, 2025, the OMB Director must submit a plan to reduce the Federal workforce through efficiency improvements and attrition. Once that OMB plan is issued, the hiring freeze expires for executive departments and agencies except for the IRS.
Federal Civilian Hiring Halt
You cannot be hired into any Federal civilian position that was vacant at noon on January 20, 2025, and no new Federal civilian positions may be created unless an exception applies. The freeze applies across the executive branch unless the memorandum or other law provides an exception.
IRS Hiring Freeze Stays in Place
The hiring freeze will remain in effect for the Internal Revenue Service until the Secretary of the Treasury, in consultation with the OMB Director and the USDS Administrator, determines it is in the national interest to lift it. The IRS freeze does not have the 90‑day expiration tied to the OMB plan.
No Contracting to Circumvent Freeze
Federal agencies are prohibited from contracting outside the Federal Government to get around the hiring freeze. If you run a business that might have been hired to fill roles instead of creating Federal civilian positions, that contracting route is barred when used to circumvent the freeze.
Military and Safety Jobs Exempt
The hiring freeze does not apply to military personnel or to positions related to immigration enforcement, national security, or public safety. If you work in those areas, agencies may continue to hire for those roles.
Collective Bargaining Agreements Preserved
The memorandum does not abrogate any collective bargaining agreement that is in effect on the date of the memorandum. If you are covered by a federal collective bargaining agreement, those agreements remain in force.
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