Thousands of federal employees in Texas are grappling with unexpected job losses as the Trump administration continues its sweeping effort to downsize the government workforce. The sudden terminations have left many without income, benefits, or guidance on what comes next. Workers in Austin, Dallas, and Houston are now facing not only the loss of their careers but also an urgent financial crisis as their employer-sponsored health insurance vanishes within weeks of being laid off.
Among those impacted is Kara Bond, an archaeologist who had been working for the U.S. Forest Service. Bond was undergoing treatment for breast cancer when she received an email on Valentine’s Day notifying her of her termination. She had just three weeks left before completing her probationary period, which would have secured her permanent employment. Instead, she found herself unexpectedly out of a job and, soon, out of health insurance.
“I’ll lose my healthcare in 31 days from my date of termination,” Bond said. “So that’s an additional stressor I could have not used right now.”
Bond is one of thousands of federal employees in Texas and across the country who are now realizing that losing their jobs means losing their Federal Employees Health Benefits (FEHB) coverage. Unless they qualify for retirement benefits, they are left scrambling to find costly alternatives like COBRA, private marketplace plans, or spousal coverage. For those with pre-existing medical conditions, the timing of these layoffs couldn’t be worse.
The mass firings have also caught some workers off guard, with terminations issued even to those who believed they had already secured their jobs. Haley Densler, who worked for the Environmental Protection Agency in Dallas, was also fired on Valentine’s Day. She had already received confirmation that she had completed her probationary period and was eligible for continued employment. Her supervisor had no explanation for the sudden termination.
“My immediate reaction was just kind of a state of shock,” Densler said. “I immediately called my supervisor, and she expressed that she had no clue why it was happening. She did not agree with it.”
The layoffs are part of a larger federal workforce reduction effort spearheaded by the Trump administration, which has framed the initiative as a necessary step to cut government spending. An executive order issued by the administration declared that the goal is to “dramatically reduce the size of the federal government while increasing its accountability to the American people.”
For federal employees who devoted their careers to public service, these layoffs represent more than just job losses. The uncertainty surrounding their benefits and financial futures has made an already difficult transition even more overwhelming. Many are now seeking guidance on how to navigate health insurance options and retirement savings decisions while trying to find new employment.
Michael A. Scarpati, CEO of RetireUS, warns that workers need to act quickly before they lose access to crucial benefits. Many federal employees assume they will have access to continued healthcare or retirement options after being laid off, but strict eligibility requirements mean that many will be left with no employer-sponsored coverage.
“Federal employees impacted by workforce reductions are at serious financial risk if they don’t act quickly,” Scarpati said. “For those losing health insurance, they need to understand their options before that 31-day window closes, or they could face massive out-of-pocket expenses.”
To assist workers in making informed financial decisions, RetireUS has launched Government Transition Decision HQ, a free crisis-response hub designed to provide expert guidance on retirement planning, health insurance options, and financial strategies for federal employees navigating job loss.
The initiative offers webinars on managing federal benefits, one-on-one consultations with financial professionals, and educational resources to help workers avoid costly mistakes. Scarpati, who is based in Austin, has been working directly with federal employees affected by the layoffs to help them assess their financial options.
“The biggest financial risk most retirees and laid-off workers face isn’t running out of money—it’s unexpected medical costs,” Scarpati said. “Many people assume they’ll have healthcare options in retirement or after job loss, but the reality is that many are forced into expensive, last-minute solutions because they didn’t plan ahead.”
The situation is particularly dire for workers in Texas, where job markets in public-sector fields are already competitive. Many federal employees are now rushing to secure new employment in an effort to maintain healthcare coverage and financial stability.
As unions file legal challenges against the layoffs and some workers fight for reinstatement, the reality remains that thousands of Texas federal employees are already facing immediate consequences. With their severance pay running out and benefits expiring, many are left searching for answers on how to protect themselves from financial ruin.
For Bond, Densler, and the thousands of others in Texas who received termination emails this month, the next steps remain uncertain. With little time to prepare and few options available, they are now forced to make high-stakes financial decisions that could impact their futures for years to come.