Hiring Freeze
January 20, 2025
Action Summary
- General Mandate: Establishes a hiring freeze for Federal civilian employees across the executive branch, effective January 20, 2025.
- Scope and Exemptions: Applies to all executive departments and agencies, except for military personnel and positions related to immigration enforcement, national security, or public safety; Social Security, Medicare, and Veterans’ benefits remain unaffected. The Director of OPM may grant exemptions when necessary.
- Workforce Reduction Plan: Requires OMB, in consultation with OPM and USDS, to submit a plan within 90 days to reduce the federal workforce through efficiency improvements and attrition. Upon plan issuance, the memorandum expires for all except the IRS.
- IRS Specific Provision: The hiring freeze for the IRS remains in effect until the Secretary of the Treasury, in consultation with OMB and USDS, determines it is in the national interest to lift it.
- Contracting Restrictions: Prohibits using contracting outside the Federal Government to circumvent the intent of the memorandum.
- Operational Flexibility: Allows reallocations of personnel and funds to maintain essential services in areas such as national security, homeland security, and public safety.
- Appointment Exceptions: Does not limit presidential appointments, including roles requiring Senate confirmation, Senior Executive Service, temporary hiring under section 3161 of title 5, or other non-career appointments approved by agency leadership.
- Collective Bargaining: Maintains that existing collective bargaining agreements remain unaffected by this order.
Risks & Considerations
- The hiring freeze on Federal civilian employees could lead to delays in government services and operations, potentially affecting research funding and collaboration opportunities with federal agencies.
- Vanderbilt University may experience challenges in securing federal grants or contracts if the freeze impacts the availability of federal personnel to manage and oversee these agreements.
- The freeze could result in increased competition for non-federal research funding, as universities and research institutions seek alternative sources of support.
- There may be a temporary reduction in opportunities for students and graduates seeking federal employment, which could impact career services and placement efforts at Vanderbilt.
Impacted Programs
- Vanderbilt’s Office of Federal Relations may need to adjust its strategies to navigate the hiring freeze and advocate for exemptions or considerations that benefit the university’s interests.
- Research centers and institutes at Vanderbilt that rely on federal partnerships may need to explore alternative funding sources or collaborations to mitigate potential disruptions.
- The Career Center might need to provide additional support and resources for students and alumni seeking employment in sectors less affected by the federal hiring freeze.
Financial Impact
- The hiring freeze could lead to delays in the disbursement of federal funds for research projects, affecting cash flow and project timelines.
- Vanderbilt may need to allocate additional resources to identify and secure non-federal funding opportunities to compensate for potential shortfalls in federal support.
- There could be increased competition for private sector funding, necessitating strategic adjustments in grant writing and partnership development efforts.
Relevance Score: 3 (The order presents moderate risks involving compliance and potential impacts on federal funding and partnerships.)
Key Actions
- Vanderbilt’s Human Resources Department should assess the potential impact of the federal hiring freeze on any collaborative projects or partnerships with federal agencies. Understanding how this freeze might affect staffing and resource allocation in these partnerships will be crucial for maintaining project timelines and deliverables.
- The Office of Federal Relations should monitor developments related to the exemptions granted by the Office of Personnel Management (OPM) to understand any potential opportunities for Vanderbilt to engage with federal agencies that may still be hiring under specific exemptions.
- Vanderbilt’s Research Administration should evaluate the implications of the hiring freeze on federally funded research projects. Ensuring that these projects have the necessary personnel and resources to continue without interruption will be important for meeting research goals and maintaining compliance with grant requirements.
Opportunities
- The hiring freeze presents an opportunity for Vanderbilt’s Career Center to support students and alumni seeking federal employment by providing guidance on navigating the hiring landscape during the freeze. This could include workshops on alternative career paths and strategies for applying to exempt positions.
- Vanderbilt’s Public Policy Studies Program can leverage the hiring freeze as a case study in government efficiency and workforce management. This can enhance curriculum offerings and provide students with real-world examples of policy implementation and its effects on public administration.
Relevance Score: 3 (Some adjustments are needed to processes or procedures due to potential impacts on federal collaborations and research projects.)
Timeline for Implementation
- Effective immediately on January 20, 2025, all hiring for Federal civilian vacancies at noon is frozen.
- The Director of the Office of Management and Budget (OMB) must submit a workforce reduction plan within 90 days of the memorandum’s date.
Since the hiring freeze takes effect immediately on January 20, 2025—implying an urgent, immediate response—and is the shortest actionable timeline, I used this to determine the compliance urgency.
Relevance Score: 5
Impacted Government Organizations
- Executive Branch Agencies: The hiring freeze applies broadly to all executive departments and agencies (with specific exceptions), affecting a wide range of Federal civilian workforce entities.
- Office of Personnel Management (OPM): Empowered to grant necessary exemptions to the hiring freeze and to help shape workforce reduction strategies.
- Office of Management and Budget (OMB): Tasked with developing, in consultation with OPM and USDS, a plan within 90 days to reduce the size of the workforce through efficiency measures.
- United States DOGE Service (USDS): Consulted alongside OPM and OMB in the implementation of the workforce reduction plan.
- Internal Revenue Service (IRS): Specifically retains the hiring freeze beyond the general expiration of the directive for other executive agencies until the Secretary of the Treasury determines a lift is warranted.
- Department of the Treasury: Involved in the decision-making process regarding the lifting of the hiring freeze for the IRS, ensuring national interest considerations are addressed.
Relevance Score: 5 (The hiring freeze directive impacts nearly all executive branch agencies, making it a broad and high-impact measure.)
Responsible Officials
- Director, Office of Personnel Management (OPM) – Authorized to grant exemptions from the hiring freeze where necessary.
- Director, Office of Management and Budget (OMB) – Tasked with developing and submitting a plan to reduce the Federal workforce within 90 days, in consultation with OPM and USDS.
- Administrator, United States DOGE Service (USDS) – Collaborates with OMB and OPM on the workforce reduction plan and on decisions regarding the freeze for the IRS.
- Secretary of the Treasury – In consultation with OMB and USDS, responsible for determining when the hiring freeze may be lifted for the Internal Revenue Service.
- Heads of Executive Departments and Agencies – Charged with executing the provisions of this memorandum, including maintaining essential services and reallocating resources as necessary.
Relevance Score: 5 (Directives affect high-ranking agency and Cabinet-level officials, impacting policy implementation across the executive branch.)