Urban Institute, Urban Wire, Jonathan Schwabish, March 24, 2025
During the opening months of the Trump administration, the Department of Government Efficiency (DOGE) has cut or threatened to cut the jobs of thousands of federal workers. Previous Urban work showed these cuts will likely affect communities nationwide, especially smaller areas that rely heavily on federal jobs, including those near military installations, federal correctional facilities, and large Department of Veterans Affairs (VA) hospitals.
Recent announcements have specified which agencies will experience workforce reductions and to what extent. Although the exact nature of the cuts will affect areas differently, data from the Office of Personnel Management (OPM) at the agency and metropolitan area level suggest workforce cuts would lead to nationwide agency office closures, increasing unemployment rates, and service reductions.