Late on January 24, the Trump administration terminated many of the country’s top oversight officials, including the Inspector General for the Department of Health and Human Services (HHS) Christi Grimm and the Inspector General for the Department of Housing and Urban Development (HUD) Rae Oliver Davis. Both had been appointed by the President during his first term. 

The Washington Post reported  that around 17 “watchdogs” at various federal agencies were notified of their immediate termination via email at the end of the President’s first week in office.

Inspectors General often span multiple administrations and are mandated by federal law to investigate fraud, give policy advice, handle certain complaints by employees, and report to the heads of agencies and Congress every six months. 

The legality of the terminations remains in question since federal law also requires a 30-day notice and detailed explanation to Congress ahead of firing a Senate-confirmed Inspector General. Bipartisan congressional leaders state they did not receive the required notice. In response, the Republican and Democratic leaders of the Senate Judiciary Committee sent a letter to the President requesting an explanation for the terminations, as well as information about replacements for the ousted officials.  

Agency Impacts 

Reports issued by the Offices of the Inspector General (OIG) help keep federal programs accountable to taxpayers and to Congress. For example, HUD OIG’s most recent report to Congress, issued in November, 2024, outlined fiscal responsibility actions and progress toward previous agency recommendations. In reports in 2024, for instance, OIG had reviewed the agency’s telework policies and had also called on HUD to improve oversight of the physical condition of certain affordable housing units. 

Similarly, the HHS OIG has been responsible for numerous recent audits, reports and resources including Lessons Learned During the Pandemic Can Help Improve Care in Nursing Homes, Home Health Agencies Failed To Report Over Half of Falls With Major Injury and Hospitalization Among Their Medicare Patients, and Special Fraud Alert: Suspect Payments in Marketing Arrangements Related to Medicare Advantage and Providers. LeadingAge worked closely with the HHS OIG last year to share concerns with Medicare Advantage (MA) plans prior authorization practices. 

Broader Efforts to Reshape the Federal Agency Workforce 

The removal of numerous top oversight officials comes amidst other notable actions related to the federal workforce early in the presidential term. Since January 20, the administration has announced a hiring freeze for new federal employees, a return to in-person work five days per week for the federal workforce, and a deferred resignation incentive for the civil service.  

HHS currently employs more than 80,000 federal employees across the United States and around the world, 77% of whom are currently telework-eligible according to the Washington Post. This includes 10 regional offices in the U.S. which ensure HHS maintains close contact with state, local, and tribal partners. According to the Washington Post, HUD has nearly 10,000 employees, most of whom are currently telework-eligible.  

The media reports that the administration expects 5-10% of the federal workforce to accept the deferred resignation option, which requires the employee to submit a deferred resignation by February 6 that takes effect in September. 

Except in rare cases, personnel that accept the offer are not expected to adhere to work requirements. The incentive is widely viewed as an effort to downsize the federal government and is available to full-time federal employees, excluding postal workers, military and immigration personnel, and some national security teams. 

However, some lawmakers are questioning the President’s authority to enter into the deal, including Senator Tim Kaine (D-VA), whose recent Senate floor speech cautioned federal workers “to beware” of the possibility of salaries being discontinued early, calling the incentive a “trick.” In addition, two of the largest unions representing federal employees questioned the legality of the offer, where the money would come from to make the “pay-offs,” and whether the administration would be able to fulfil the promise. The official letter sent to federal employees states that the Administration cannot provide full assurance regarding federal positions for employees that decline the resignation offer, citing the possibility of positions being eliminated. 

LeadingAge relies on the federal workforce to administer key programs at HHS, HUD and other federal agencies that impact aging in America, such as affordable senior housing for older adults and Medicare enrollment operations, and is monitoring issues related to the federal workforce.