U.S. Government Shake-Up: 8,000 Senior Officials Lose Job Protections, IRS Hit Hard
05.06.2026 - 02:46:43 | boerse-global.de
The Internal Revenue Service, already reeling from an exodus of roughly a quarter of its workforce in the first year of the current administration, now faces a fresh wave of upheaval. A new executive order signed by President Donald Trump on June 3, 2026, strips civil-service protections from around 8,000 of the highest-paid federal employees — and the tax agency is one of the most exposed.
The order reclassifies senior positions — primarily those at the GS-15 pay grade, where annual salaries can reach $200,000 — into a new category called "Schedule Policy/Career." This label builds on the controversial "Schedule F" concept from Trump’s first term. Affected workers will now be considered "at-will" employees, meaning they can be fired at any time without cause and without going through standard disciplinary procedures. Among the roles hit are policy directors, regional managers, program chiefs and senior advisers across numerous agencies.
At the IRS alone, the directive allows the reclassification of more than a dozen positions, including senior advisers, human-resources experts and staff in the office of the chief counsel. The agency had already lost about 25 percent of its workforce during the first 12 months of the Trump administration. Critics warn that removing job protections will accelerate the brain drain and further politicize the tax-collection agency.
Legal pushback and a narrowed scope
The final number of 8,000 affected employees is far lower than earlier projections, which had imagined up to 50,000 positions in the crosshairs. The change follows a preparatory phase completed in February. But resistance has been immediate and organized: federal-employee unions filed lawsuits as early as January to block the reclassification, and some proceedings have been temporarily halted by federal judges. Legal experts predict the case will eventually reach the Supreme Court.
Scott Kupor, director of the Office of Personnel Management, defended the move as necessary to build a workforce willing to carry out political directives. He cited greater accountability and a strengthening of democratic processes within the administrative state. The White House insists that fair hiring practices remain in place. Opponents counter that the order hollows out civil-service protections and injects partisanship into day-to-day governance.
Two more executive actions on the same week
The civil-service overhaul coincides with other major policy moves. On June 2, 2026, Attorney General Todd Blanche announced the cancellation of a planned $1.8 billion "Anti-Weaponization" fund, which had been designed to compensate people who considered themselves victims of political persecution. Republican lawmakers had fiercely opposed the fund, fearing it could also benefit individuals involved in the January 6 Capitol riot. They threatened to block a $72 billion immigration-policy package unless the fund was scrapped. Though the fund was dropped, certain tax-exemption agreements tied to the president remain in place.
Also on June 2, the administration issued new guidelines for the technology sector. A separate executive order creates a voluntary framework for AI developers: companies can submit new models to the NSA for review 30 days before public release. The move lands in a turbulent period for tech. In the first five months of 2026, the industry cut more than 115,000 jobs — even as demand for specialized AI talent surged by over 700 percent.
