‘We are completely in a holding pattern,’ as Trump’s cuts strand energy companies and create a ‘culture of fear’ across federal agencies

Federal workers across multiple agencies report significant disruptions in basic government functions due to workforce cuts and spending restrictions implemented under President Donald Trump’s administration. The changes have affected key organizations, including the Environmental Protection Agency (EPA), Department of Energy (DOE), Federal Emergency Management Agency (FEMA), and several others.

More than 1,300 EPA employees have departed through deferred resignation offers, while DOE lost over 3,500 staff members. These workforce reductions come as Trump faces significant challenges with his other major policy initiatives. NOAA saw a reduction of more than 1,000 employees, representing approximately 10 percent of its workforce. The Interior Department’s Bureau of Reclamation has lost a quarter of its staff.

According to Politico, small businesses like OTS R&D in Beltsville, Maryland, are feeling the impact of these changes. CEO Cara Martin revealed that her company’s $1.2 million grant to improve vapor compressors for electric heat pumps is now in limbo. “We are completely in a holding pattern,” Martin said, explaining that without assurance from the Energy Department about second-year funding, work has stopped, and staff layoffs may be necessary.

Spending restrictions create widespread operational challenges

Agency employees report that new approval processes for expenses have effectively frozen many basic functions. At the EPA, scientists cannot publish research due to their inability to pay journal submission fees or hire contractors for peer reviews. Even basic computer software purchases for data analysis have been halted.

The DOE faces similar challenges, with officials unable to visit national laboratories or attend conferences. Dozens of energy projects funded through the 2021 bipartisan infrastructure law and the 2022 Inflation Reduction Act are reportedly stalled due to approval restrictions.

At FEMA, crucial disaster preparation exercises known as “thunderbolt” have been canceled, potentially affecting hurricane season response capabilities. The agency has also eliminated disaster survivor assistance teams, leaving questions about field communication during emergencies.

The changes have created what employees describe as a “culture of fear” within agencies, particularly at DOE, where political appointees have reportedly refused to delegate work to career staff. The National Weather Service now struggles with 155 vacancies, affecting 24-hour operations and reducing weather balloon launches that are crucial for forecast accuracy.

The White House defends these changes as necessary for reducing the federal deficit, though Trump has shown a pattern of reversing course on major policy positions when facing pushback, stating that agencies can fulfill core responsibilities at current staffing levels. However, legal challenges have delayed some of the administration’s planned reorganizations, leaving many agencies in an uncertain state while waiting for potential mass layoffs and further restructuring.