Trump seeks to limit legal options for fired federal workers

• Fired federal workers would lose access to the independent Merit Systems Protection Board for appeals, instead forced to appeal through OPM whose director reports to Trump
• The Trump administration pushed out 317,000 federal employees in 2025, though OPM Director Scott Kupor claims only a fraction were fired with most accepting buyouts or leaving voluntarily
• The proposal builds on Trump's broader efforts to shrink federal government and undermine enforcement offices that protect federal employee job rights

Summary: Trump Administration Proposes Limiting Appeal Rights for Fired Federal Workers

The Trump administration announced plans on February 9 to restrict legal recourse for terminated federal employees by eliminating their right to appeal dismissals to the independent Merit Systems Protection Board (MSPB). Under the proposal from the Office of Personnel Management (OPM), fired workers would instead appeal directly to OPM—an agency whose director reports to President Trump—effectively removing independent oversight from the process.

Key Figures:

• 317,000 federal employees departed in 2025, according to OPM Director Scott Kupor
• Only a fraction were fired; the majority accepted buyouts or resigned voluntarily (exact figures unverified)

Context and Implications:

This proposal represents an escalation of Trump's second-term agenda focused on downsizing federal government workforce through mass layoffs. The administration has systematically dismantled job protection mechanisms and enforcement offices for federal employees alongside these workforce reductions.

The MSPB traditionally serves as an independent mediator in disputes between federal workers and agencies. Transferring appeal authority to OPM would consolidate power within the executive branch and potentially reduce successful appeals by terminated employees.

Market Relevance:

While not directly market-moving, this policy could impact:

• Government contractors and service providers dependent on federal workforce levels
• Legal services firms handling employment disputes
• Companies in sectors traditionally staffed by federal workers
• Long-term implications for government efficiency and service delivery

The proposal underscores the administration's commitment to federal workforce restructuring, which may affect government spending patterns and private sector companies serving federal agencies.