On day one of his administration, President Donald Trump called for federal employees to return to the office, telling agency leaders to “take all necessary steps to terminate remote work arrangements and require employees to return to work in person at their respective duty stations on a full-time basis.” The administration’s Department of Government Efficiency (DOGE) is aggressively pushing this agenda, with a stated goal of saving taxpayer dollars while consolidating government operations.
While this effort is framed as a move toward efficiency, it comes with significant financial consequences for federal employees. Those who have benefited from telework now face unexpected costs that could strain their budgets. Recognizing and planning for the full scope of “returning to the office” expenses can help Feds manage the financial impact of this transition. Here are a few key points to consider.
Federal Employee Commuting Costs: Gas, Transit, and Parking
Whether you’re driving or using public transportation, federal employee commuting costs add up quickly. For those hopping behind the wheel, gas, tolls, and vehicle maintenance create an ongoing financial burden. Parking fees may also exceed $20 a day — amounting to thousands annually.
For example, a Metro ride between Northern Virginia and D.C. can cost over $10 per day, creating an expense of $200 or more a month. And while some agencies offer transit benefits, they may not fully offset the costs. Feds may consider taking steps to reduce commuting costs, such as carpooling or exploring teleworking flexibility.
Relocation Expenses: Moving Closer to Work
Some Feds may consider relocating to shorten their commute, but moving comes with financial trade-offs. Living closer to Washington, D.C., often means:
- Higher rent or mortgage costs: Housing prices in the metro area often far exceed those in outlying counties.
- Moving expenses: Hiring movers, security deposits, and lease terminations can cost thousands.
- Property taxes and cost of living adjustments: Closer proximity to federal offices can mean higher taxes and living costs.
Before making this move, it’s important to carefully weigh these pros and cons, along with the overall lifestyle adjustment that comes with this type of relocation.
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Case Study: The Real Cost of a D.C. Commute
Consider a GS-12 federal employee who lives in Fairfax, VA, and commutes to downtown D.C. five days per week. Here’s an estimate of what the commute could cost each year:
- Driving: Approximately $6,500 a year, when you add in gas, parking, and maintenance.
- Public transit: Approximately $2,700 per year, assuming a 5-day a week commute and a cost of $6 to $10 per trip.
- Time lost commuting: Over 10 hours per week, translating to roughly 500 hours annually — that’s the equivalent of over 12 full workweeks spent in transit.
The additional time spent commuting can reduce productivity, limit work-life balance, and increase stress. For many employees, telework, hybrid work, or alternative schedules may provide some relief.
Other Financial Considerations: Meals, Wardrobe, and Childcare
Daily lunches, coffee stops, and snacks can add up to more than $50 per week — $2,600 per year. Employees may also need to refresh their professional wardrobes and factor in the cost of dry cleaning. For working parents, returning to the office can mean higher childcare costs, especially if daycare hours need to be extended to accommodate commuting time.
To manage these costs effectively, employees can bring lunch from home, take advantage of workplace meal programs, or use discount apps for dining out. Investing in versatile, long-lasting professional attire can help reduce wardrobe expenses over time.
Parents may also consider exploring dependent care flexible spending accounts (FSAs) and employer-provided childcare benefits to help offset rising childcare costs.
Create a Plan for Returning to the Office
While returning to the office is becoming an unavoidable reality for many Feds, financial preparation can make the transition smoother. Factoring the additional expenses into your budget, looking for ways to minimize costs, and taking advantage of available benefits may help Feds better manage the financial impact of this transition.
For personalized guidance, reach out to the team at Serving Those Who Serve at [email protected].
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
