Laid-off federal workers are overwhelming states with unemployment requests, putting a strain on finances
Dozens of states are warning that their social services are under financial strain due to the volume and pace of unemployment requests from federal employees who have been fired in the DOGE-led job cuts.
At least 100,000 employees have been terminated across various federal agencies and departments over the last seven weeks. Tens of thousands of probationary employees have also been let go and more reductions are expected in the near future.
Federal workers say they have no time to prepare for unemployment and there is minimal communication with the administration about obtaining benefits. They are left scrambling to obtain unemployment with their states so they can continue paying their bills and keeping food on the table.
As a result, states are being inundated with social service requests for unemployment with little to no warning and dwindling financial resources, 19 state attorney generals said in a court filing last week.
'In addition to the informational and procedural injuries resulting from the deprivation of notice to which they were entitled, the lack of notice has impeded the ability of many Plaintiff States to support affected employees and thereby mitigate the financial and other impacts on state services,' Maryland Attorney General Anthony Brown wrote.
The Maryland Department of Labor said it receives 30 to 60 new claims every day. The state is home to more than 140,000 federal workers.
The Illinois Department of Employment Security has received nearly the same number of applications for unemployment benefits from federal workers in two and a half months as it did all of last year.
Each time an unemployment claim is filed, the state must investigate and then allocate the proper resources. But, for areas of the country such as Washington, D.C., which relies heavily on taxpayer dollars – many of whom are federal employees, the loss of tax revenue impacts the social services they can offer.
The state attorney generals have asked a federal judge to place an injunction on the reductions in force.
The breakneck pace at which the government is conducting layoffs, buyouts or firings is a result of President Donald Trump's collaboration with billionaire Elon Musk to create the Department of Government Efficiency – a newly-established and informal group within the executive department analyzing areas where the government can cut costs.
Musk has promised to drastically reduce the federal workforce as part of the effort to cut costs, believing that most government employees are unnecessary.
Federal agencies have until April to provide the administration with their plan to consolidate management. Per federal laws, if a government agency carries out a reduction in force, it must follow guidelines that protect certain employees and provide advance notice to states about the incoming surge of unemployed residents.
State attorney generals say the government has not done that.
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