Information current as of 12:11 p.m. EST
As part of his first actions in office, President Trump has signed several executive orders that will have significant implications for Feds. These changes touch on areas ranging from a return to in-person work policies to reforms in hiring processes and senior executive accountability. Below, we summarize the key executive orders and their potential impact on Feds, providing insights into how these directives may affect your career and retirement planning.
- Return to In-Person Work
One of the first steps President Trump took upon his inauguration was to direct federal agencies to transition back to in-person work. During the pandemic, many federal employees shifted to remote work; however, this executive order mandates a return to traditional office environments. For Feds, this could mean a significant potential shift in daily routines and commutes. While remote work arrangements may still be in place for some roles—heads of departments and agencies have been granted the ability to make “exemptions they deem necessary”—agencies will likely begin phasing out work-from-home policies as employees return to their offices.
- Reforming the Federal Hiring Process and Restoring Merit to Government Service
This executive order seeks to reform the federal hiring process, emphasizing merit-based decisions over political considerations. Purportedly, this order is supposed to streamline the hiring process, reduce political interference, and ensure that hiring decisions are based on skill and experience.
This order may also influence the overall structure of the federal workforce, and long-term employees may need to stay vigilant about how shifts in hiring procedures affect their roles and career trajectory. For those planning for retirement, it’s important to consider how these reforms might impact job security or promotional opportunities within the federal government.
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- Restoring Accountability to Policy-Influencing Positions within the Federal Workforce
President Trump's third executive order focuses on “restoring accountability” to policy-influencing roles within the federal workforce. This order calls for greater transparency and oversight for senior officials who shape policy decisions. The intent is purportedly to ensure that individuals in influential positions are held to high standards of accountability and that policy decisions align with the public interest rather than personal or political agendas.
Feds in or aspiring to senior positions should be mindful of the increased scrutiny this order introduces.
- Hiring Freeze
In an effort to reduce the size of the federal workforce, President Trump signed an executive order imposing a hiring freeze across many federal agencies. This means no new hires will be permitted unless they are deemed critical for national security or public safety. For current employees, this hiring freeze could result in increased workloads and fewer opportunities for advancement, as agencies will be limited in their ability to replace departing staff.
This order also called for “the Director of the Office of Management and Budget (OMB), in consultation with the Director of OPM and the Administrator of the newly-created United States DOGE Service (USDS), to submit a plan to reduce the size of the Federal Government’s workforce through efficiency improvements and attrition.” Upon presentation of this plan, the hiring freeze is stated to expire for all agencies and departments with the exception of the IRS, for whom the hiring freeze will remain in effect until the Secretary of the Treasury, in consultation with the Director of OMB and the Administrator of USDS, “determines that it is in the national interest to lift the freeze.”
Feds should prepare for potential changes in workload and job responsibilities as a result.
- Restoring Accountability for Career Senior Executives
This order is intended to enhance “accountability” for senior career executives within federal agencies. It focuses on ensuring that senior officials remain “responsive to the needs, policies, and goals” of the public. It also seeks to provide greater oversight and transparency in the performance and conduct of these executives through the following action items:
- SES Performance Plans are to be produced within 30 days of the signing of this order by OPM in coordination with the Director of the Office of Management and Budget (OMB). The order states that agencies must adopt these plans.
- Each agency head should terminate its existing Executive Resources Board (ERB), institute a new or interim ERB, and assign senior noncareer officials to chair and serve on the board as a majority alongside career members
- Each agency head should terminate its existing Performance Review Board membership and re-constitute membership with individuals committed to full enforcement of SES performance evaluations that promote and assure an SES of the highest caliber
For federal employees in senior roles or those looking to move into such positions, this could mean greater performance expectations and an increased focus on outcomes. For retirees, this could have long-term implications on how executive roles are managed within agencies, possibly affecting pension plans, retirement packages, or transition periods for those exiting senior positions.
At Serving Those Who Serve, we understand the unique challenges faced by Feds. It’s important to stay informed about these changes and how they may influence your financial future – to stay informed and prepare for future changes, consider subscribing to our newsletter, The Weekly Serving to get all the latest updates for Feds delivered right to your inbox.
If you need guidance in adjusting your retirement strategies or planning for any of these shifts, our team is here to help you navigate the evolving landscape. Reach out to us at [email protected] anytime to schedule a complimentary, 1-on-1 financial planning consultation with one of our fed-focused advisors.
**Written by Katelyn Murray, CFP®, ChFEBC®, FBS®, CFT-1™, ECA. 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 Katelyn Murray 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. **
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Katelyn Murray, CFP®, ChFEBC℠, FBS®, CFT-1™: Relationship Team Lead & Financial Planning Expert
Katelyn is a financial advisor with over a decade of experience working with Feds to build a healthy, balanced relationship with money and to design and enjoy the retirement of their dreams. In addition to her CERTIFIED FINANCIAL PLANNER™ and Chartered Federal Employee Benefits Consultant℠ designations, Katelyn also holds a Master in Business Administration as well as a graduate certificate in financial psychology and behavioral finance. Her unique approach merges financial psychology with traditional wealth management expertise to create an integrated financial planning approach that helps clients make the most of the one resource they can’t get more of: time.
Here at Serving Those Who Serve, Katelyn serves as our Director of Relationship Management, mentoring our advisors and guiding our client experience. She also co-hosts The Fed15 podcast each week with STWS founder Dan Sipe.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
**Written by Katelyn Murray, CFP®, ChFEBC®, FBS®, CFT-1™, ECA. 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 Katelyn Murray 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. **
