Tax enforcers, rocket scientists, bank regulators fired as Trump slashes federal workforce - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
February 20, 2025 Newswires
Share
Share
Post
Email

Tax enforcers, rocket scientists, bank regulators fired as Trump slashes federal workforce

By Joey Roulette, Karen Freifeld, Pete Schroeder and Jack Queen ReutersWest Hawaii Today

President Donald Trump's administration targeted bank regulators, rocket scientists and tax enforcers on Tuesday for dismissal as a U.S. judge gave him the green light to continue with the unprecedented remaking of the U.S. civil service - at least for now.

Tech billionaire Elon Musk's Department of Government Efficiency, or DOGE, has swept through federal agencies slashing thousands of jobs since Trump became president last month and put Musk in charge of a drastic overhaul of government.

The White House has not said how many people it plans to fire and has given no numbers on the mass layoffs so far. The information to date has come from employees of federal agencies.

The Office of Personnel Management, the government agency that manages the civil service, set a deadline of 8 p.m. on Tuesday (0100 GMT) for all government departments to provide a list of probationary employees who have been terminated so far and those they want to retain, according to an OPM spokesperson.

According to government data, about 280,000 civilian government workers were hired less than two years ago with most still on probation, which makes them easier to terminate.

Agencies should prioritize retaining the highest-performing employees in "mission-critical roles," said McLaurine Pinover, OPM's head of communications.

It remained unclear whether the numbers would be disclosed.

Trump appointed Musk, the world's richest person and his biggest donor during his election campaign, to oversee the culling of the federal workforce, which the Republican president views as bloated, corrupt and insufficiently loyal to him.

‘People are scared'

With tax-filing season underway, senior officials at the Internal Revenue Service identified 7,500 employees for dismissal, with possibly more on the chopping block, according to a person familiar with the matter. Republicans had objected to an IRS staff expansion undertaken by Democratic President Joe Biden that independent budget analysts said would boost tax collections and help close the persistent U.S. budget gap.

The Federal Deposit Insurance Corporation, which oversees banks, said it has fired an unknown number of new hires, according to an email seen by Reuters. The cuts could potentially worsen staffing problems at a 6,000-person agency where more than one in three workers are eligible for retirement.

Roughly 1,000 new hires, including rocket scientists, at NASA were expected to be laid off on Tuesday as well, according to two people familiar with the U.S. space agency's plans, with more cuts possible.

"People are scared and not speaking up to voice dissent or disagreement," said one employee at the 18,000-person agency who spoke on condition of anonymity.

Layoffs were also expected at the Federal Emergency Management Agency, which handles flood insurance and disaster response, as well as its parent agency, the Department of Homeland Security, sources said.

The Trump administration plans to fire hundreds of senior Department of Homeland Security employees this week, according to an administration official and a second source familiar with the matter. The planned firings, first reported by NBC News, would target people viewed as not aligned with Trump, the sources said.

Among the workers swept up in the overhaul of dozens of agencies are those reviewing Musk's brain implant company Neuralink and others monitoring an outbreak of H5N1 bird flu that has infected millions of chickens and cattle this year.

Cost savings

The overhaul comes as Trump attempts to exert even tighter control over the Justice Department, an agency traditionally seen as independent of White House influence.

Several department officials resigned last week after refusing a directive from a Trump appointee to drop a corruption case against New York Mayor Eric Adams. Another top prosecutor, Denise Cheung, resigned on Tuesday after refusing to investigate a government contract awarded during Biden's tenure.

The acting head of the Social Security Administration, Michelle King, resigned over the weekend after Musk's team asked for access to a vast database of personal and financial data at the agency, which handles retirement and other safety-net programs, according to a person familiar with the matter.

Musk's team has said it has saved $55 billion so far, a relatively small slice of the annual $6.7 trillion federal budget. The DOGE website has begun giving more details of government contracts it has canceled after widespread complaints that its work was not transparent.

Older

Banker French Hill clears path in Congress for bankers to charge you more

Newer

As Elon Musk reforms the U.S. state, some wonder where the institutional safeguards have gone

Advisor News

  • House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall
  • Iowa House backs temporary tax hike to fill Medicaid gap
  • Iowa Medicaid temporary tax plan draws sharp public opposition
  • Charitable giving planning can strengthen advisor/client relationships
  • New $6K deduction could provide tax planning window for retirees
More Advisor News

Annuity News

  • We can help find a loved one’s life insurance policy
  • 2025: A record-breaking year for annuity sales via banks and BDs
  • Lincoln Financial launches two new FIAs
  • Great-West Life & Annuity Insurance Company trademark request filed
  • The forces shaping life and annuities in 2026
More Annuity News

Health/Employee Benefits News

  • 'No-cost" Lantern surgical benefit has modest early use from SHP members
  • House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall
  • ACA TURNS 16 AS MEGABILL'S ANTI-IMMIGRANT STANCE SETS PATH TO END COVERAGE GAINS AMONG PEOPLE WITH LAWFUL IMMIGRATION STATUS
  • WARNER, SENATE DEMOCRATS UNVEIL PLANS TO LOWER HEALTH COSTS AMID TRUMP'S BROKEN PROMISES TO AMERICANS
  • Medicare-for-all makes a comeback
More Health/Employee Benefits News

Life Insurance News

  • Murray Giles Hulse
  • New individual life premium hits record-setting $17.5B in 2025
  • Maryland orders Cigna to halt underpaying doctors or give cause
  • Insurers optimistic about their investments in 2026
  • AM Best Affirms Credit Ratings of PVI Insurance Corporation
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

Your Cap. Your Term. Locked.
Oceanview CapLock™. One locked cap. No annual re-declarations. Clear expectations from day one.

Ready to make your client presentations more engaging?
EnsightTM marketing stories, available with select Allianz Life Insurance Company of North America FIAs.

Unlock the Future of Index-Linked Solutions
Join industry leaders shaping next-gen index strategies, distribution, and innovation.

Press Releases

  • LifeSecure Insurance Company Announces Retirement of Brian Vestergaard, Additions to Executive Leadership
  • RFP #T02226
  • YourMedPlan Appoints Kevin Mercier as Executive Vice President of Business Development
  • ICMG Golf Event Raises $43,000 for Charity During Annual Industry Gathering
  • RFP #T25521
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet