Federal Funding and New York
The budget resolutions passed by the 119th Congress will lead to a dramatic restructuring of the federal⁠⁠-⁠⁠state⁠ ⁠relationship. This online resource focuses on federal funding and how it supports services in the State of New York.

Federal Employment Loss in NY in 2025

Federal Funding and New York
The budget resolutions passed by the 119th Congress will lead to a dramatic restructuring of the federal⁠⁠-⁠⁠state⁠ ⁠relationship. This online resource focuses on federal funding and how it supports services in the State of New York.

Federal Funding and New York - Page Style

As reported by the Office of the State Comptroller, there were several federal actions — including a hiring freeze, Deferred Resignation Program, the creation of the Department of Government Efficiency and attempts to end collectively bargained rights — that were intended to reduce the federal workforce. 

While the number of federal government employees has dropped from a high of approximately 147,000 in 2000, the annual average number of federal employees in New York has remained relatively steady between 113,000 and 117,000 since 2013.1 In 2025 this stability was interrupted with a significant decline in federal employment in the state: New York lost approximately 8,500 federal government jobs between January and December 2025, a decline of 7.3 percent. The sharpest decline occurred starting in October 2025, which marked the beginning of federal fiscal year 2026. 

Federal Government Employees in New York, Seasonally Adjusted 
(in thousands of employees)

Note: Seasonally Adjusted Figures

Source: New York State Department of Labor, Bureau of Labor Statistics, Current Employment Statistics (CES).

Federal employees are located in all parts of New York, and many regions saw decreases in federal employment between December 2024 and December 2025. While New York City had the largest overall decrease in terms of numbers – seeing a reduction of 3,100 (or 37.3 percent of the overall Statewide decrease) – the Ithaca metro area saw the largest percentage decrease of 33.3 percent (reflecting a decline of approximately 100 federal employees). Additional regional breakdowns can be seen in the figures below; note that regions with relatively flat federal employment in 2025 are not included.2

Level Change in Federal Employees
(in thousands)

Note: Non-Seasonally Adjusted Data

Source: Bureau of Labor Statistics, CES, State and Metro Area Employment, Hours and Earnings

Percent Change in Federal Employees

Source: Bureau of Labor Statistics, CES, State and Metro Area Employment, Hours and Earnings

Endnotes

1 The only notable exception was a temporary increase in 2020 due to Census Bureau hiring. 

2 These regions include the metro areas of Elmira, Kingston and Binghamton.