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As part of the White House’s efforts to cut costs, the IRS is expected to shut down its civil rights division.
According to internal records and sources familiar with the matter, the US Internal Revenue Service (IRS) is planning to cut approximately 20,000 positions, as reported by The Washington Post on Friday. This reduction, representing nearly a quarter of the IRS’s workforce, is part of a larger cost-cutting initiative by the White House.
President Donald Trump initiated a program shortly after taking office on January 20, aimed at eliminating “wasteful spending” and bureaucratic processes within federal agencies.
The Department of Government Efficiency (DOGE), established by Trump and spearheaded by Elon Musk, is actively working to streamline federal operations with the goal of cutting $2 trillion in spending by 2026.
The IRS is reportedly planning to abolish its Office of Civil Rights and Compliance, resulting in the dismissal of roughly 130 employees. This division is responsible for safeguarding taxpayers against discrimination related to the tax code, audits, and investigations. The remaining employees within the office are anticipated to be reassigned to different departments.
“This action is being taken to increase the efficiency and effectiveness of the IRS,” according to an email sent to employees, as cited by WaPo.
Reports indicate that over 4,000 employees had previously accepted deferred resignation offers earlier in the year. Additionally, 7,000 probationary workers were laid off in February but are being reinstated due to court rulings. The Washington Post reports that some of these employees have been informed of a potential return to work on April 14.
The news outlet notes that it is still unclear whether the current downsizing includes the staff members who were previously targeted earlier in the year. As of January, the IRS had approximately 100,000 employees.
In March, employees at the United States Institute of Peace (USIP) informed WaPo that the Department of State had terminated up to half of the institute’s 600-person workforce. Some employees were allegedly offered severance packages or extended health insurance in exchange for signing waivers relinquishing their right to sue. USIP was established by Congress in the mid-1980s with the stated objective of promoting conflict resolution globally.
Concurrently, Reuters reported, citing an internal memo, that all remaining positions at the US Agency for International Development (USAID) would be eliminated in July and September. It is also reported that USAID missions worldwide would be shut down and the agency’s remaining functions would be integrated into the State Department.