You’ve been laid off from the federal government. Now what?

UCFE is a benefit for former federal employees

                        FILE — The Internal Revenue Service in Washington, Jan. 24, 2025. The Trump administration started firing about 6,700 employees at the Internal Revenue Service on Thursday, Feb. 20, according to people familiar with the matter, extending its cost-cutting measures to the federal agency responsible for collecting tax revenue from millions of Americans. (Eric Lee/The New York Times)

Credit: NYT

Credit: NYT

FILE — The Internal Revenue Service in Washington, Jan. 24, 2025. The Trump administration started firing about 6,700 employees at the Internal Revenue Service on Thursday, Feb. 20, according to people familiar with the matter, extending its cost-cutting measures to the federal agency responsible for collecting tax revenue from millions of Americans. (Eric Lee/The New York Times)

If you’ve been laid off from the federal government, there are resources for you, experts say.

Among them: Unemployment compensation benefits.

Layoffs are a painful fact of life for a lot of people, not just federal workers. There were 1.8 million people deemed laid off or discharged nationally in December 2024, according to the federal government.

A lot of the advice for laid-off federal workers is the same for anyone confronting that situation: Check on health insurance, ask about final severance or payment arrangements, update your resume, take a deep breath, prepare to network and a lot more.

But for some federal workers, fears of layoffs are in the air. The Office of Management and Budget and the Office of Personnel Management issued a memo with guidance on how to conduct reductions in force. The Department of Defense has said it expects about 5,400 probationary workers will be released as part of an “initial effort” to cut the department’s civilian workforce by 5% to 8%.

But federal workers may apply for Unemployment Compensation for Federal Employees — dubbed “UCFE” — which in Ohio is administered by the Ohio Department of Job and Family Services, the same department that oversees jobless insurance benefits for everyone who has lost a job through no fault of their own.

Andrew Stettner is director of economy and jobs at the Century Foundation think tank. He also worked as director of unemployment insurance modernization for the U.S. Department of Labor under former President Joe Biden.

“I think this is probably the single largest mass layoff event we’ve ever had in U.S. history,” Stettner said in an interview. “You have one employer laying all these people off within a three-month period. That’s what we call a mass layoff.”

He estimates that some 200,000 probationary employees may have lost jobs or are on their way to separation. About 75,000 employees took the “fork in the road” retirement incentive offer, he believes. Those numbers don’t include federal contractors.

“The way the government is doing this is unprecedented,” he said.


                        The Office of Personnel Management building in Washington, Jan. 29, 2025. (Eric Lee/The New York Times)

Credit: NYT

icon to expand image

Credit: NYT

First steps

In Ohio, a good first step is to visit this Ohio Department of Job and Family Services web site. You may also call the department at (877) 644-6562, 8 a.m. to 5 p.m. Monday through Friday.

“It’s a separate program run by the states,” Stettner said of UCFE. “And it has more steps in it than a typical unemployment program.”

UCFE’s main differences: A worker’s claim requires the federal government to inform the state about the worker’s prior employment, and the federal government reimburses the state for payments to the worker.

His advice: The first week your federal paycheck stops, apply for unemployment benefits.

Don’t be quiet, Stettner says. Get your dismissal paperwork as soon as possible, particularly the SF-50 and SF-8 notices, which provide a reason for separation and earnings information.

Contact your administrator officer or Office of Human Resources for the forms.

You can still seek benefits without the forms, but Stettner advises getting them if you can. They can speed your claim.

Tom Betti, a spokesman for the Ohio Department of Job and Family Services, said laid-off federal workers may apply just like any other laid-off Ohioan, but like Stettner, he advises former federal workers to obtain those forms.

The UCFE benefit is for civilians, not for uniformed members of the military, Betti noted.

If a former civilian employee was posted overseas, was laid off and moved back to Ohio, that person should file for benefits in Ohio, he added.

‘Be ready for the ride.’

States should be familiar with the UCFE system, Stettner said. But as more federal workers are laid off, some state systems may be temporarily overwhelmed.

“This is their mission, right?” he said. “Their mission is to pay unemployment in a crisis. They are ramping up right now to get ready for this.”

“Ohio’s got a great team; they’re going to do everything they can,” he added.

You will have to certify every week that you’re unemployed. Expect paperwork and questionnaires. Respond factually and honestly, he said.

“Expect some back and forth,” Stettner said.

Reach out, and ask state unemployment departments to file a wage affidavit on your behalf. The state should file one on your behalf with your former federal employer, to verify that you worked for the government.

You can also attest to past wages with a pay stub.

“It’s a confusing process. Kind of be ready for the ride,” he said.

Stettner has a fact sheet on UCFE benefits here.

Bottom line: Staying connected to employment resources and staying busy may be of help, Stettner believes.

“Just apply for benefits,” he said. “It’s not going to be everything for you.”

About the Author