Reckless Cuts, Real Consequences: America Needs a Workforce Strategy, Not Just a Scalpel

The recent mass reductions in the federal workforce, orchestrated by the Department of Government Efficiency (DOGE) under Elon Musk’s direction, may be the most negatively disruptive government reorganization effort in modern U.S. history. Branded as a bold push for “efficiency,” this initiative has eliminated over 275,000 public service jobs with little to no planning for what comes next. And while DOGE claims to have saved $160 billion, independent analysis suggests it may have actually cost taxpayers far more—up to $135 billion—due to lost revenues, delayed services, and the economic ripple effects of indiscriminate cuts.

Demonstrators rally outside the U.S. Treasury Department after it was reported billionaire Elon Musk, who is heading U.S. President Donald Trump’s drive to shrink the federal government, has gained access to Treasury’s federal payments system that sends out more than $6 trillion per year in payments on behalf of federal agencies and contains the personal information of millions of Americans, in Washington, U.S., February 4, 2025. REUTERS/Kent Nishimura

This is not government made leaner—it is government made weaker. And the fallout is not just fiscal or institutional. It is human.

Tens of thousands of career civil servants—engineers, scientists, auditors, nurses, AmeriCorps volunteers, economic development project managers, and policy experts—have been cast aside. Their livelihoods disrupted, their expertise lost, and their communities left to absorb the economic shock. Beyond the personal costs, essential services from tax processing to emergency preparedness have been gutted, with long-term consequences for federal performance and public trust.

Nowhere is this more painfully visible than in Virginia. The Commonwealth is home to over 190,000 civilian federal employees, 130,000 active-duty service members, and at least 200,000 federal contractors—more than 10% of the state’s workforce. Fairfax County alone employs over 83,000 in federal roles and contracting. The sudden elimination of thousands of probationary employees, early retirements, and canceled contracts has destabilized the job market across Northern Virginia and Hampton Roads, hitting local economies and public budgets. Entire communities built around public service—from teachers to dry cleaners to defense engineers—are now at risk.

In response to widespread terminations under the DOGE initiative, several federal courts have intervened to protect the due process rights of federal employees. Judges across multiple circuits have ruled that elements of the mass layoffs—particularly those targeting probationary employees and civil servants under union protections—violated statutory notice requirements, collective bargaining agreements, or administrative law procedures. In some cases, courts have issued injunctions ordering the reinstatement of thousands of workers. However, compliance by the Trump administration has been inconsistent, prompting legal analysts and members of Congress to express concern over patterns of noncompliance and potential contempt of court. These developments underscore growing tension between the executive branch’s reorganization efforts and the judiciary’s role in upholding federal employment protections.

Equally troubling is the growing appearance that DOGE’s actions may not be entirely impartial. Elon Musk, who leads DOGE while also maintaining ownership stakes in major federal contractors such as SpaceX, Starlink, and Tesla, has benefited directly from federal procurement and subsidies for years. Yet the first agencies targeted by his scalpel—USAID, the SEC, and the Consumer Financial Protection Bureau—are precisely those that had previously scrutinized his companies or challenged his practices. Whether through investigations into financial disclosures, regulatory compliance, or foreign aid restrictions on his ventures abroad, these agencies had clear institutional roles in overseeing Musk’s business interests. Their gutting raises serious ethical questions about conflict of interest, abuse of power, and whether DOGE has prioritized personal vendettas over public interest.

It didn’t have to be this way. And it doesn’t have to stay this way.

What America urgently needs is not just austerity or the reckless dismantling of agencies without vision. Yes, reform and planned reductions in bureaucracy are sometimes needed—but what we lack is a real workforce transition strategy—one rooted in mitigation, retraining, and reinvestment. Here’s what that looks like:

1. Mitigation Must Be the First Step
Responsible downsizing includes transition assistance for displaced workers. This means robust severance packages, mental health support, and—most importantly—job placement services. Congress should direct the Department of Labor to activate its Dislocated Worker Program under WIOA to include laid-off federal employees. The Office of Personnel Management (OPM) must also be resourced to coordinate reemployment pathways, including private-sector placements and state-level public service roles.

2. Invest in Workforce Development, Not Just Rhetoric
The federal government must partner with states, community colleges, and industry to create targeted retraining pipelines—especially in high-demand fields like cybersecurity, infrastructure, clean energy, and healthcare. Portable credentials should be developed to allow federal experience to translate into private-sector roles. And workforce development must center equity—ensuring that underserved communities are not left behind in the transition.

3. Support Small Business Creation as a Pillar of Recovery
Thousands of displaced federal workers bring administrative, regulatory, and technical expertise. These are exactly the skill sets that make strong entrepreneurs—if they are given a chance. The Small Business Administration should launch a tailored program offering startup grants, low-interest loans, and mentoring to ex-federal employees seeking to start businesses. Public-private partnerships can incubate ventures that not only create jobs but replace the community services DOGE dismantled.

4. Transparency and Oversight Cannot Be Optional
The chaos surrounding DOGE’s savings claims—misreporting of canceled contract values, dubious metrics, and lack of oversight—highlights the urgent need for accountability. Congress must demand an independent audit of DOGE’s activities and require a public impact assessment of all major reductions. You can’t shrink government effectively if you can’t even count accurately.

A Final Thought and what we must do in Virginia.
Government reform should be strategic, not performative. It should be evidence-based, not ideologically driven. The talent and institutional memory lost under DOGE will take years to rebuild—unless we act now to invest in people, not just balance sheets.

While Congress must act to correct the recklessness of DOGE’s federal workforce cuts and enforce accountability, we cannot ignore the deep polarization fueling these policies—nor can we wait for a broken national consensus to heal. In this climate, states like the Commonwealth of Virginia must lead. With tens of thousands of federal workers and contractors directly affected, Virginia has both the moral obligation and economic incentive to advance state-level solutions. From expanding retraining programs and small business support to creating public-private workforce transition hubs, Virginia can demonstrate how to govern with compassion and foresight. These are not just technocratic ideas—they are values-driven strategies that Democrats must champion. As Abigail Spanberger campaigns for Governor, embracing these proposals should be central to her platform: not just to recover from DOGE’s damage, but to define a model of responsive, inclusive governance for the country.

The federal workforce is not the problem; the lack of a coherent plan for modernization is. We can do better. We must.