Trump layoffs could cost government billions in unemployment payouts – Washington Examiner
The Trump administration has initiated mass layoffs aimed at reducing federal workforce costs by seeking to cut 10% of federal employees, including many on probation. This move, however, could lead to considerable government expenses in the form of unemployment benefits, possibly amounting to billions of dollars. With rising unemployment claims in Washington, D.C., attributed to these layoffs, there was a notable 36% increase in claims reported in one week alone. The maximum unemployment benefit in D.C. is $444 per week, leading to predictions that 200,000 laid-off employees receiving unemployment for six months could cost the government approximately $2.3 billion. Additionally, many employees accepted a deferred resignation package that provides pay and benefits until september, which the administration claims will result in long-term savings for taxpayers.
Trump mass layoffs could cost government billions of dollars in unemployment benefits
The Trump administration has laid off tens of thousands of federal employees in an effort to save taxpayers money, but the government will still have to pay for these terminated employees’ unemployment benefits, which could total billions of dollars.
The White House is seeking to cut 10% of the federal workforce, having issued a request to cut all probationary employees, which could affect approximately 280,000 employees who’ve been employed for less than two years by the federal government. However, some of these probationary employees, such as those at the National Nuclear Security Administration, were later asked to return to their positions.
President Donald Trump and his team have also made a deferred resignation offer to most federal employees, which would offer roughly eight months of salary for those who chose to accept it.
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It is uncertain how much money the federal government will be saving from the layoffs. However, the Department of Veteran Affairs, which has fired 1,000 employees, shared that it now expects to save more than $98 million annually.
Unemployment claims on the rise
In Washington, D.C., unemployment claims have skyrocketed in just the last couple of weeks, corresponding with the mass firings across the federal government.
In the week ending on February 8, 1,780 unemployment claims were filed in D.C. — a 36% increase from the 1,310 claims filed the previous week. There has been a 55% increase in unemployment claims in the first six weeks of 2025 than in the previous period of the same duration.
To qualify for unemployment in Washington, D.C., and across the country, a person must have lost their job through no fault of their own, be able and actively seeking work, and have made enough wages in the last year to qualify, which will determine how much money they’re eligible to receive.
Those eligible for unemployment can receive benefits in Washington, D.C., Virginia, Maryland, and in most states for up to 26 weeks or six months.
How much might the firings cost the government in unemployment payouts?
How much money a person is eligible for in unemployment benefits is based upon the state where they reside and their prior income. In Washington, D.C., the maximum weekly paycheck a person can receive on unemployment is $444.
Following these numbers, if 200,000 of the terminated federal employees receive $444 weekly of unemployment for 26 weeks, it would cost the federal government $88.8 million a week. Over six months, that comes to an estimated $2.3 billion in unemployment benefits.
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In addition, 77,000 employees have accepted the Trump administration’s deferred resignation package, which will offer them full pay and benefits till the end of September. It is uncertain how much money that will cost, but White House press secretary Karoline Leavitt said it will save the federal government hundreds of millions of dollars in the long run.
“We are saving taxpayers hundreds of millions of dollars with this buyout,” Leavitt told NewsNation’s Markie Martin. “When you think about the overall cost … we are saving the American taxpayers money at the end of the day, and this is going to make our government more efficient.”
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