Government Memo Outlines How Agencies Should Streamline Federal Workforce

Federal government agencies should focus on the “maximum elimination” of functions that are not statutorily mandated, while enabling high-quality, efficient delivery of those are that statutorily mandated, according to a memorandum issued Wednesday (Feb. 26) to help agencies implement President Donald Trump’s Department of Government Efficiency (DOGE) initiative.

The memo was issued by the directors of the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM).

In a post on X announcing the memo, OPM said that the guidance is meant to help streamline the federal workforce and that “OPM is committed to delivering a more accountable government that better serves the American people.”

OPM and OMB have issued guidance to streamline the federal workforce in line with @POTUS’s commitment to cutting waste and improving efficiency. OPM is committed to delivering a more accountable government that better serves the American people. Read more: https://t.co/SwSbUVykdV

— U.S. Office of Personnel Management (@USOPM) February 26, 2025

Trump’s DOGE initiative was announced in a Feb. 11 executive order and requires that agency heads prepare to initiate “large-scale reductions in force (RIFs), consistent with applicable law,” and develop Agency Reorganization Plans by March 13, according to the memo.

Those plans are to be submitted to OMB and OPM, the memo said.

The memo said agency heads should aim to consolidate duplicative management layers and areas of the agency organization chart; reduce non-critical components and positions; automate routine tasks by implementing technological solutions; close or consolidate regional field offices; and reduce the use of outside consultants and contractors.

It added that agency heads should collaborate with the DOGE team leads within the agency and should focus on positions that are not typically designated as essential during lapses in appropriations.

Agency heads should also submit a second plan that will outline their vision for more productive, efficient agency operations moving forward, according to the memo. This is due by April 14, and agency heads should expect to implement it by Sept. 30.

These measures exclude a variety of positions in law enforcement, the military, the executive office, the U.S. Postal Service, and those that require Presidential appointment or Senate confirmation, per the memo.

DOGE was created amid a flurry of executive orders in January and aims to update federal software and technology to boost efficiency and productivity within the federal government, PYMNTS reported at the time.

On Thursday (Feb. 20), Trump floated the idea of giving a $5,000 “DOGE Dividend” by returning money saved through DOGE’s cost-cutting measures to U.S. taxpayers.