On February 11, 2025, President Trump signed an Executive Order, Implementing The President’s “Department of Government Efficiency” Workforce Optimization Initiative” that calls for an apparent workforce optimization of the entire federal government.
Why It Matters
As part of the President’s Executive Order, federal agencies will be required to submit plans to designated agencies on how it would meet the Order. The Executive Order establishes key dates that federal agencies will need to meet. For those doing business with or receiving funding from the U.S. federal government, these key dates are important to follow as it could impact funding, operations, and ability to meet goals and objectives.
Key Dates to Remember
January 20
President issued a memorandum that froze all hirings within the federal government. Any job offerings not completed on or after this date were rescinded. The intrigue is that new hires can only apply if there is 1 to 4 ratio, or for every new hire, four employees depart the respective federal agency.
March 13
All federal agencies provided a Phase 1 Agency Reduction In Force and Reorganization Plan (ARRP) to the U.S. Office of Management and Budget (OMB) and U.S. Office of Personnel Management (OPM) for review and approval. These plans include ways to 1) improve services to U.S. citizens, 2) eliminate cost, and 3) reduce the size of the federal government.
The plans exempt the following workforce
- Law enforcement positions,
- Border security positions,
- National security positions,
- Immigration enforcement positions,
- Public safety positions,
- Military personnel in the armed forces and all Federal uniformed personnel,
- Presidential appointments or Senate confirmed
- Officials appoint through temporary organization hiring authority pursuant to 5 U.S.C. § 3161,
- Executive Office of the President, or
- U.S. Postal Service.
March 14
The Senate and House passed a continuing resolution to keep the federal government funded until the fiscal year ending September 30, 2025. The CR as it is known in federal government circles does not call for increased spending, but maintains budget levels. President Trump signed the CR into law.
April 2
President Trump’s declared “Liberation Day” in which he issued broad-based tariffs with 10% global tariffs along with pending reciprocal rates for most of targeted countries. These tariffs impact imported items such as electronics, clothing, auto parts. The basis for the tariffs is to promote more fair trade and bring manufacturing to U.S. soils. Many of the targeted countries have issued its own retaliatory tariffs, taking a wait-and-see approach, or negotiating deals with the Trump administration.
April 14
All federal agencies are required to submit a Phase 2 ARRP to OMB and OPM for review and approval. These plans provide an apparent vision of how each agency will operate moving forward with an emphasis on the federal fiscal year ending September 30, 2026.
April 19
The estimated date for when the hiring freeze is lifted. The intrigue is that the hiring freeze can be extended if OMB feel that workforce reduction among federal agencies were not significant enough to meet the President’s Executive Order. All signs appear to indicate that the hiring freeze will remain in effect until further notice.
May 2
On April 1, 2025, President Trump’s executive order formalizes the repeal of Section 321 of the Tariff Act of 1930, commonly known as the “de minimis exemption.” The century-old easement makes it possible for packages valued at less than $800 to enter the United States duty free. It is popular among foreign e-commerce giants like Shein and Temu. However, the law has faced growing criticism for allegation of giving Chinese e-commerce giants an unfair advantage in the U.S. The executive order takes effect on May 2 with packages with goods from China worth less than $800 will be subject to a tax of 30 percent of the value of the item or placed a flat tax of $25 per package. The flat tax increases to $50 per package on June 1.
May 14
Deadline for the first monthly progress report due to OMB and OPM. These progress reports provide OMB and OPM with details on the status of each federal agencies’ efforts toward implementing Phase 2 of the ARRPs.
June 16
Deadline for the second monthly progress report due to OMB and OPM.
June 19
Pending date for ByteDance, parent to TikTok, to either divest the social media or be banned from operating in the United States. This date is an extension from the previous date of April 5, 2025, due to President Trump action to buy more time for a potential deal to keep the app operating in the United States. Any deal would need approval from regulatory agencies in the United States and the Chinese government. However, it would not be a surprise if the deadline is pushed back again or the President decides to not enforce the rule.
July 16
Deadline for the third monthly progress report due to OMB and OPM.
September 30
Deadline for all federal agencies to complete the implementation of the Phase 2 ARRP.
September 30
President Trump’s executive order issued on March 25 requires the federal government to move away from the use of paper-based payments to electronic methods. The executive order phases out paper check disbursements and receipts by September 30. This includes intragovernmental payments, benefits payments, vendor payments, and tax refunds. All federal agencies will be expected to move to using electronic funds transfer (EFT) methods that include direct deposit, prepaid card accounts, and other digital options.
The Takeaway
Pay attention to these dates as it comes and goes in 2025 and beyond. Being proactive can help you navigate the uncertainty that will impact how you do business during the Trump administration. Those dates involving the federal workforce will need to be closely watched to understand the impact to funding and dealings with federal agencies. Having the right information and understanding can separate you and your business or nonprofit from those taking a reactive approach.