Resources for Displaced Federal Workers

February 21, 2025

Executive orders and policy changes from the Trump administration have created ripple effects throughout the federal government, leading to funding cuts, furloughs, and layoffs. The Trump administration has called for mass layoffs of federal employees with probationary status as well as those deemed non-essential, a move that’s been upheld after a U.S. District Judge refused a request by federal workers unions to issue a temporary restraining order on February 20.  Many government agencies and federal departments will see deep cuts to their workforce.

Government contractors, nonprofits, and other non-governmental organizations will also be impacted by the federal funding freeze, leading to difficult staffing decisions. As you take steps to adhere to federal mandates or to safeguard your business’s financial stability, you can help support your employees by supplying access to resources for displaced workers.

  • Office of Personnel Management (OPM) Reemployment and Transition Programs: The OMB maintains two career transition programs for federal employees: The Career Transition Assistance Plan (CTAP) for current federal employees and the Interagency Career Transition Assistance Plan (ICTAP) for current and separated federal employees. The OMB also enforces federal agency’s use of the Reemployment Priority List (RPL) as a mechanism to prioritize reemployment of former federal employees impacted by reductions in force or compensable injuries. More information can be found at the OMB website.
  • Unemployment Compensation for Federal Employees (UCFE): The U.S. Department of Labor offers the UCFE program to provide unemployment compensation to Federal employees who lost their employment through no fault of their own.
  • Maryland Resource Page for Workers Impacted by the Federal Government Transition: As a state home to one of the highest percentages of federal employees, Maryland has created a resource hub for its impacted residents. The webpage directs to both federal- and state-level programs and provides general information to keep impacted workers up to date.
  • Virginia Resource Page for Residents Affected by Federal Workforce Restructuring: Like Maryland, Virginia is densely populated by federal workers, many of whom have likely been impacted by the policy and funding changes. Federal workers living in Virginia can access this Virginia-specific resource page for a compilation of resources and information relevant to former federal employees.
  • State Unemployment Programs: Federal, nonprofit, and other non-governmental employees who lost their employment due to the federal funding freeze can explore state-level unemployment benefits through the Department of Labor for the state in which they reside.
  • Other State-Managed Federal Aid Programs: Displaced employees needing additional support may be eligible for a variety of federal programs administered by the states in which they reside, such as the Supplemental Nutrition Assistance Program (SNAP), the Temporary Assistance for Needy Families (TANF) program, the Women, Infants, and Children (WIC) program, and Medicaid. Individual state government websites will have additional information on eligibility and application procedures.

The bottom line 

Shifts and uncertainty with federal funding and aid policies have had detrimental impacts on federal and non-governmental workers. If your organization has been impacted by federal funding cuts, help ensure your employees know what resources are available to them.

Navigating stop-orders and other changes can be complex, but you don’t have to do it alone. Aprio’s Government Contracting and Nonprofit teams are here to guide you every step of the way. Whether you need support with claims work, termination settlements, or strategic planning, we’re ready to help. 

Connect with an Aprio team member.  

Related Resources

Prime Contractors: How to Manage Multiple Terminations, Subcontractors, and Settlements

Government Contractors: You Need a Financial Action Plan

Federal Funding Freeze: Steps for Short- and Long-Term Success

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About the Author

Mark Douglas Robins

Mark Robins is an assurance partner at Aprio specializing in nonprofit accounting and financial reporting, Uniform Guidance compliance and financial statement audits. With over a decade of experience in public accounting and a passion for research, Mark has gained deep technical knowledge in areas including revenue recognition, fair value concepts, related entities and federal compliance. A skilled teacher, he has also led multiple webinars and trains a team of nonprofit accountants in financial reporting, compliance and auditing.


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