Title: Trump Implementing Multiple Executive Orders, Including a Permanent Hiring Freeze at IRS
President Donald Trump's first day in office saw a flurry of executive actions, including orders that could influence your tax situation and impact federal employees, notably those at the Internal Revenue Service (IRS). Two directives focused on the federal workforce: a requirement for employees to return to their physical workplaces and a hiring freeze for most agencies.
Return to the Office
In January 2025, Trump signed an executive order instructing federal employees to return to their offices "as soon as practicable." As the largest employer in the U.S., the federal government employs over 2 million people. This order followed a 2024 report from the U.S. Office of Personnel Management (OPM) showing that 54% of federal employees already worked in offices full-time.
However, approximately half of federal employees work in roles that are not eligible for telework. Examples include those in healthcare, food inspection, and managing natural resources onsite. Roughly 10% of employees work entirely remotely. In the Department of the Treasury, about 90,000 employees hold remote work-eligible positions.
During the previous fiscal year, former IRS Commissioner Danny Werfel testified before the House Committee on Ways and Means, expressing concerns about the remote work policy. Congressman David Kustoff (R-Tenn.) questioned whether such a policy was beneficial for taxpayers due to communication difficulties and data security concerns.
Some argue that the return to office could make it more challenging for federal agencies to compete for talent in the job market. Meanwhile, others maintain that agencies can balance service levels and data protection while employing remote workers, as evidenced by the private sector.
Hiring Freeze for Federal Agencies
Trump also issued an executive order imposing a hiring freeze on most federal departments. This freeze does not affect the military or involves specific roles in immigration enforcement, national security, or public safety. The intent is to be temporary, with exceptions.
The freeze does not apply to the IRS, which plans to hire additional staff to address a lack of staffing that has led to declining quality of taxpayer service. This staffing increase was made possible by funding from the Inflation Reduction Act. The IRS hired over 560 accountants in November and December 2023 and another 160 during a hiring event in Houston.
However, with the new executive order, the IRS hiring plans are halted until the Secretary of the Treasury, in consultation with relevant offices, determines it's in the national interest to lift the freeze.
In 2024, the IRS services significantly improved, with call centers achieving peak efficiency and addressing over one million more taxpayer calls than in the previous year. The improved response times meant that callers waited on average just over 3 minutes, down from 27 minutes in 2022.
With the IRS planning to commence the tax filing season soon, the ongoing hiring freeze could have immediate consequences. Reduced staffing could lead to longer processing times for tax returns and delayed refunds for taxpayers.
What is an Executive Order?
Executive orders are directives from the President addressed to federal agencies. They serve as legal and enforceable mandates, with the exception of requiring Congressional approval. If deemed lacking in legal or statutory authority, federal courts can invalidate them.
Executive Orders throughout History
Every U.S. President, except for William Henry Harrison, has issued executive orders. George Washington, our first president, issued just eight. Notable executive orders include Lincoln's Emancipation Proclamation and his issuance of tax collection guidelines. Executive orders have gained increasing use since the early years of American democracy. For example, Trump issued 220 executive orders between 2017 and 2021, closely followed by President Biden's 160 during his term.
Sources:1. Washington Post - Trump to freeze federal hiring except for military, some agency positions2. Bloomberg Law - Trump to Order Mandatory Return for Many Federal Workers3. CNN - Federal employees face uncertainty as Trump issues return-to-office executive order4. Newsweek - Trump Officially Mandates Full-Time Work in Office for Federal Employees
- Due to President Donald Trump's executive order in January 2025, federal employees were instructed to return to their offices as soon as practicable, affecting over 2 million employees.
- The hiring freeze imposed by Trump's executive order in 2017 excluded the military and specific roles in immigration enforcement, national security, or public safety.
- The IRS, despite the hiring freeze, sought to address a lack of staffing that had negatively impacted taxpayer service, hiring over 700 accountants in late 2023 and early 2024.
- During Trump's presidency, he issued a large number of executive orders, with 220 between 2017 and 2021, setting a high record for order usage.
- Although taxes are a significant aspect of federal operations, certain executive orders, such as those related to the return to offices or hiring freezes, may have indirect impacts on tax-related matters and services provided by the IRS.
