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Stephen Prager for Common Dreams
President Donald Trump’s top economic adviser boasted on Fox Business Thursday that the government had slashed more than 300,000 “high-paying” jobs from the federal payroll during the president’s first year back in office.
Asked by anchor Maria Bartiromo about the administration’s efforts to cut government spending, National Economic Council Director Kevin Hassett said it had made “a huge amount of progress.”
“I think the biggest thing that we can point to is that we’ve cut government employment by 300,000 workers,” he said. “Those are jobs that are very high-paying that are gone forever.”
He claimed the cuts reduced government spending by “an unthinkable amount of money,” perhaps $1 trillion over the next ten years.
He also said that the administration “reduced the deficit last year by $600 billion” through a combination of higher-than-expected economic growth, tariff revenues, and “supply side effects” of Trump’s massive tax cut, which mostly benefited the wealthiest Americans while gutting the social safety net.
Dean Baker, a longtime collaborator of Hassett’s despite their opposing political beliefs, wrote on social media that Trump’s economic adviser was dramatically exaggerating the deficit reduction that occurred during the administration’s first year.
According to the Congressional Budget Office (CBO), the deficit was about $1.8 trillion for fiscal year 2025, just $41 billion less than the previous year and $56 billion lower than the $1.9 trillion deficit CBO projected in its most recent baseline.
“In the real world, the deficit fell… less than one-tenth of what Kevin claims,” Baker said.
Trump has touted the layoffs of hundreds of thousands of government employees from their “boring federal jobs” as one of his crowning achievements.
Among the agencies hit by mass layoffs were the Department of Veterans Affairs, where more than 12,700 employees got the axe; the Department of Health and Human Services, which lost more than 14,400 workers; the Social Security Administration, whose staff shrank by more than 6,600; and the Environmental Protection Agency, which lost more than 4,000 employees.
Jacqueline Simon, policy director at the American Federation of Government Employees (AFGE), the largest labor union representing federal workers, told Common Dreams that even if slashing jobs did reduce the deficit as Hassett claimed, the harm far outweighs any such benefit—not only for the fired employees, but for the millions of Americans who depend on services they provide.
“When you say 300,000 jobs, it is a nice round number, and you link it to deficit reduction, which he was lying about,” Simon said. “The fact of the matter is, the disappearance of those 300,000 jobs means degraded healthcare for our veterans; slower or nonexistent service at the Social Security Administration for the elderly and disabled who rely on Social Security for their income; and the elimination of huge swaths of the Environmental Protection Agency (EPA) that help ensure we have clean air to breathe and clean water to drink.”
“You have federal prisons absolutely overwhelmed by too many inmates and too few corrections officers, endangering public safety,” she continued. “Consumer product safety has been eviscerated. There are also serious public health concerns involving substance abuse, childhood nutrition, and vaccinations.”
She decried Hassett’s comments as “ignorant” in light of his false claims about deficit reduction, but also “just demonstrably pretty cruel and disdainful” given the impact these job losses have on individuals, families, communities, and society as a whole.
“It’s cruel,” Simon said, “not only on the people who held those jobs—about a 100,000 of whom are military veterans—but the impact of the disappearance of those jobs also falls on children, the elderly, anybody who consumes agricultural products, breathes air, or relies on clean water.”
“Everybody is hurt by what he’s celebrating,” she added. “I guess it’s just par for the course from this administration, but it’s still a disgusting thing to hear.”
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