Trump Administration to Cut Federal Workforce by 300,000 (12.5%) in 2025 Amid 72,730-Person Loan Forgiveness Backlog, New Exclusion Proposal

The Trump administration is projected to reduce the federal workforce by approximately 300,000 employees in 2025, representing a 12.5% decrease since January, according to the Office of Personnel Management director. This workforce reduction is expected to be completed by the end of the year. Concurrently, the student loan forgiveness program is experiencing a backlog of 72,730 applicants. A new federal proposal released on August 15 would exclude public workers from the student loan cancellation program if their employer is found to be involved in activities with a "substantial illegal purpose." This policy change could affect eligibility for loan forgiveness among certain federal employees.