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Business & Economy
Business & Economy
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The Big Story
Thousands of workers fired in Trump, Musk federal purge
Agency leaders across the federal government were directed to begin firing employees still in their probationary period a year or more after being hired.
Federal employees remain on probation anywhere from one to two years after being hired, depending on their agency, a status that still comes with workplace protections but makes them easier to remove.
The directive by Office of Personnel Management (OPM) officials could impact as many as 200,000 federal employees.
A source familiar with OPM said agency leaders have directed agencies to fire all probationary employees “with some exceptions.” It was not immediately clear what those exceptions were or the extent of discretion given to agencies.
The American Federation of Government Employees (AFGE), the largest federal employee union, pledged to fight the layoffs, saying they would hinder government performance.
Some of the agencies that have announced dismissals:
Interior Department firing 2,300 employees
Department of Veterans Affairs cutting 1,000 employees
The Trump administration has also used two other methods to cull the workforce: an executive order from President Trump directing agencies to undertake a reduction in force and the “Fork in the Road” program offering federal workers a buyout.
Agencies across government, including OPM, have already begun carrying out their layoffs of probationary employees.
Reports from numerous outlets spelled out plans to fire probationary workers at the Department of Energy, the Department ofEducation and the Small Business Administration.
It’s not clear whether such widespread firings of employees still on probation is legal.
The Hill’s Rebecca Beitsch takes it from here.
Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.
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Essential Reads
Key business and economic news with implications this week and beyond:
Treasury, Congress watchdogs launch audits into DOGE access to payment system
Two government watchdogs have launched audits into the new Department of Government Efficiency’s (DOGE) access to a sensitive federal payment system located at the Treasury Department.
Full Story
Jamie Dimon: ‘Don’t give me this s‑‑‑ that work-from-home Friday works’
JPMorgan Chase CEO Jamie Dimon scolded employees Wednesday in Columbus, Ohio, during a fiery internal town hall, after workers raised concerns with the bank’s five-day return-to-office policy, according to audio reviewed by The Hill.
Full Story
Jeff Bezos’s Blue Origin to cut 10 percent of workforce
Jeff Bezos’s aerospace company Blue Origin plans to cut about 10 percent of its workforce, its CEO told staff Thursday, according to an email obtained by The Hill.
Full Story
One-third of Americans have more credit card debt than emergency savings: Survey
A new survey from Bankrate revealed that 33 percent of U.S. adults have more credit card debt than emergency savings. That number is down from 36 percent in 2024 and 2023.
Full Story
Tax Watch
Welcome to Tax Watch, a new feature focused on the fight over tax reform and the push to extend the 2017 Trump tax cuts this year.
House panel advances budget resolution
The House Budget Committee advanced a budget resolution after a marathon meeting Thursday, clearing the first hurdle in the GOP conference’s effort to pass President Trump’s legislative agenda.
The panel approved the budget resolution in a party-line 21-16 vote, sending it to the full chamber for consideration. It remains unclear when Speaker Mike Johnson (R-La.) plans to bring the measure to the floor; the House is out of session next week and is set to return to Washington on Feb. 24.
Passage of the budget resolution marks a significant step forward in the House GOP’s quest to enact Trump’s domestic policy priorities in one sprawling bill, a measure that would extend his 2017 tax cuts, appropriate more money for the border and pass energy policy.
Republicans are looking to utilize the budget reconciliation process, which would allow the party to circumvent Democratic opposition in the Senate.
The successful committee vote came after days of logjam in the chamber, with hard-line conservatives demanding deeper spending cuts, leadership blowing through a number of self-imposed deadlines and the conference cycling through several proposals before landing on the one that advanced Thursday.
The Hill’s Evening Report breaks down the day’s big political stories and looks ahead to tomorrow. Click here to sign up & get it in your inbox
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The Ticker
Upcoming news themes and events we’re watching:
The Federal Reserve releases January meeting minutes on Wednesday at 2 p.m. ET.
Wednesday will also be Taylor Giorno‘s last day with The Hill! Send tips and well wishes to tgiorno@thehill.com while you still can.
In Other News
Branch out with more stories from the day:
Can suspending a cage-free egg law solve the soaring price problem? Nevada takes a crack at it
LAS VEGAS (AP) — Back when egg prices remained securely under $2 a dozen in 2021, Nevada joined several …
Full Story
Good to Know
Business and economic news we’ve flagged from other outlets:
US retail spending plunged last month, falling for the first time since August (CNN)
How the Trumps Turned an Election Victory Into a Cash Bonanza (The Wall Street Journal)
Growing Up Murdoch (The Atlantic)
What Others are Reading
Top stories on The Hill right now:
Interior Department fires 2,300 employees after OPM directive
The Interior Department is firing 2,300 employees after a directive from the Office of Personnel Management (OPM). Read more
VA cutting 1,000 employees
The Department of Veterans Affairs (VA) has dismissed more than 1,000 new employees as part of a wave of federal government layoffs that began this week, sparking concerns the firings could impact benefits for former service members. Read more
What People Think
Opinions related to business and economic issues submitted to The Hill:
Trump uses US trade leverage to help working Americans
After a strange opening salvo, Trump’s trade wars are just getting started
You’re all caught up. See you Monday!
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