RIF Federal Workers: Complete Guide to Reduction in Force Layoffs in 2025

Table of Contents

• What is RIF (Reduction in Force)?
• Current Federal RIF Layoffs in 2025
• Which Agencies Are Affected
• Federal Employee Rights During RIF
• Benefits and Compensation Guide
• Legal Challenges and Union Response
• Frequently Asked Questions

What is RIF (Reduction in Force)?

A Reduction in Force (RIF) is the permanent termination of federal employees due to organizational changes, budget constraints, or workforce restructuring. Unlike typical government shutdowns where employees are furloughed and eventually receive back pay, RIF actions result in permanent job loss. The U.S. Office of Personnel Management (OPM) governs RIF procedures through strict regulations that consider four key factors:

• Tenure of employment (type of appointment)
• Veterans' preference
• Length of service
• Performance ratings

Current Federal RIF Layoffs in 2025

Office of Management and Budget Director Russell Vought announced on October 10, 2025, that "substantial" federal employee layoffs have begun. This marks an unprecedented use of RIF procedures during a government shutdown.

Key Timeline Events:

• October 10, 2025: OMB confirms RIF actions are "substantial" and underway
• December 9, 2025: Effective separation date for many affected employees
• 60-day notice period: Required for most RIF actions (30 days with OPM waiver)

The administration's approach differs from previous shutdowns, where employees typically received furlough status with eventual back pay guarantees.

Which Federal Agencies Are Affected by RIF

Multiple agencies have confirmed RIF notices are being distributed to federal employees:

Department of Health and Human Services (HHS)

HHS has already eliminated over 20,000 positions this year through previous RIF actions and voluntary separations. Additional RIF notices are now being sent to employees across multiple divisions.

Department of Homeland Security (DHS)

RIF actions specifically target the Cybersecurity and Infrastructure Security Agency (CISA), with the administration citing a refocus on core mission objectives.

Internal Revenue Service (IRS)

Approximately 1,200-1,600 RIF notices have been sent to IRS employees, particularly targeting information technology positions. This follows the agency already losing 25% of its workforce earlier in 2025.

Department of Education

The Education Department continues workforce reductions, having already eliminated approximately half its staff under the current administration.

Other Affected Agencies:

• Department of Housing and Urban Development (HUD) - 300+ employees
• Environmental Protection Agency (EPA) - unspecified number
• Treasury Department - various divisions

Federal Employee Rights During RIF

Federal employees facing RIF have specific rights and protections under OPM regulations:

Notice Requirements

Employees must receive at least 60 days written notice before RIF effective date. In emergency situations, this may be reduced to 30 days with OPM approval.

Bump and Retreat Rights

Eligible employees may have rights to:

• Bump: Displace lower-standing employees in different competitive levels
• Retreat: Return to previously held positions within the same tenure group

Grade and Pay Retention

Employees downgraded through RIF may retain their higher grade for up to two years, followed by pay retention benefits.

Benefits and Compensation Guide for RIF Employees

Severance Pay

Eligible separated employees may receive severance pay based on years of service and age. Requirements include:

• 12+ months of continuous federal employment
• Involuntary separation through no fault of employee
• Not eligible for immediate federal retirement annuity

Unemployment Compensation

RIF-separated employees can file unemployment claims in the state where they were employed as federal workers. Required documents include:

• Social Security card
• SF-50 (Notice of Personnel Action)
• RIF notice letter
• SF-8 (Unemployment insurance notice)

Annual Leave Payout

All accrued annual leave is paid as a lump sum upon separation. In some cases, employees can use annual leave to reach retirement eligibility.

Health Insurance (FEHB)

Separated employees may continue FEHB coverage for up to 18 months by paying premiums directly to the government.

Legal Challenges and Union Response

The American Federation of Government Employees (AFGE) has filed federal lawsuits challenging the RIF actions, arguing they violate:

• The Antideficiency Act
• The Administrative Procedure Act
• Requirements for employees to work during shutdown

Union leaders describe the layoffs as "illegal" and "disgraceful," emphasizing that government shutdowns historically do not require mass permanent layoffs.

Frequently Asked Questions About Federal RIF

What's the difference between RIF and furlough?

RIF is permanent job termination, while furlough is temporary unpaid leave. Furloughed employees typically return to work and receive back pay when government reopens.

Can I appeal a RIF decision?

Yes, employees can appeal RIF actions to the Merit Systems Protection Board (MSPB) within 30 days of the effective date if they believe regulations weren't properly followed.

How is RIF order determined?

RIF order follows strict regulations considering tenure, veterans' preference, service length, and performance ratings. Employees with lowest retention standing are released first.

Will I receive back pay after RIF?

No, RIF is permanent separation. Unlike furlough, there is no automatic back pay provision for RIF-separated employees.

What happens to my federal retirement?

Retirement benefits depend on your years of service and age. You may be eligible for immediate annuity, deferred retirement, or withdrawal of contributions.

Resources and Next Steps

Federal employees affected by RIF should:

1. Contact your agency's human resources office immediately
2. Review your RIF notice carefully for appeal deadlines
3. File unemployment compensation claims promptly
4. Explore career transition assistance programs
5. Consider consulting with federal employment attorneys