The U.S. Department of Education has undergone a seismic shakeup. In the past few weeks, the agency has lost nearly half of its workforce—more than 1,300 employees laid off in a single day, following nearly 600 resignations and retirements. That leaves just over 2,100 employees to carry out the work of what was once a department of more than 4,000.
Entire divisions have been hollowed out. The Office for Civil Rights has seen more than 240 attorneys and investigators let go, with over half of its field offices slated for closure, including those in New York, Boston, Chicago, and Dallas. The Federal Student Aid office—responsible for managing the country’s massive student loan system—has also been gutted.
The Trump administration, under its Department of Government Efficiency (DOGE) initiative led by Elon Musk, says these cuts are necessary to streamline the federal government and increase accountability. But for the thousands left behind, the question is not just about how the work will get done—it’s about what happens to their futures.
“There’s no roadmap for what happens next,” said one Department of Education employee who asked to remain anonymous for fear of retaliation. “We’re all asking the same question: are we next?”
For those who survived the initial wave of layoffs, the anxiety is growing. It’s not just about job security—it’s about pensions, retirement timelines, healthcare benefits, and how to protect their financial future if the pink slip eventually arrives.
“For thousands of government employees, this isn’t just a career decision—it’s a financial turning point,” said Michael A. Scarpati, CEO of RetireUS, a nonpartisan financial education company that works with federal employees. “Without the right financial strategy, these workers could be making decisions that cost them long into the future.”
Scarpati says many federal employees are unaware of the hidden consequences of accepting a buyout or being forced into early retirement. Decisions made in the heat of a crisis—like cashing out retirement accounts early or missing key eligibility requirements for keeping federal health or life insurance—can create ripple effects that impact families for decades.
“If you’re under 62 and you lose your job, your pension options change. If you haven’t been in your health plan for five consecutive years, you can’t carry it into retirement. These are the kinds of things that most people don’t find out until it’s too late,” Scarpati said.
To help fill that gap, RetireUS launched a free online resource called Government Transition Decision HQ—a crisis-response hub aimed specifically at federal workers navigating layoffs, buyouts, and early retirements. It offers webinars on federal benefits, personalized transition reviews with financial professionals, and a downloadable transition guide with checklists and planning tools.
The urgency to plan is becoming more real for the remaining 2,183 employees still at the Department of Education. Their workloads are increasing, with fewer resources and a lot more uncertainty.
“There’s no communication,” said another employee from the Federal Student Aid division. “We don’t know who’s in charge of what anymore. The people who knew the systems are gone.”
Critics of the cuts argue the consequences go far beyond internal morale. Civil rights enforcement, student loan servicing, and oversight of federal education funding are now operating with skeletal staffing.
“It’s an absolute walk-away from our bipartisan commitments to civil rights,” said Catherine Lhamon, who led the Office for Civil Rights during the Obama and Biden administrations.
Even some conservative policy experts have voiced concern. Rick Hess of the American Enterprise Institute said that whether or not the cuts are warranted, the public deserves an explanation.
“It’s the Trump administration’s job to be transparent about what’s going on,” Hess said. “And ideally, to have done that before the cuts were made—not after.”
In the meantime, those left behind at the Education Department are stuck in limbo. They’re being asked to do more with less, unsure whether to plan for retirement, look for a new job, or hope their name doesn’t end up on the next layoff list.
For Scarpati, the message is clear: “The federal workforce is shrinking, and those left behind need to get their financial ducks in a row—fast. The decisions they make today could determine whether they retire comfortably or face financial hardship down the road.”
The work may be uncertain, but one thing isn’t: federal employees are now on their own to protect their financial futures, and the clock is ticking.