Are you a fired federal employee? Here are resources to help you get back on your feet.

Posted by author February 17, 2025 Jobs

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If you’re freaking out because you’re one of the tens of thousands of federal employees who recently received a pink slip, there’s help for you, experts say.

With the proper mindset and guidance, workers can retake control of their situation, they said.

“Figuring out what to do next after losing your job can feel incredibly daunting,” said Harshal Varpe, career expert at job site Indeed. “The first thing you need to do is make a short-term plan. It is like triage—before you start looking for the long-term fix, you need to stop the bleeding. What resources are available to you to help you pay the bills? Are you eligible for unemployment assistance or did you get offered severance pay? Once you understand how to navigate the immediate future, you can start thinking about your next steps.”

The resources below can guide you through all aspects of the unemployment process, from shoring up your finances and finding a new job to dealing with the emotions that come with losing a job suddenly.

What to do if you’re financially strapped after losing your job?

If you’re immediately hurting for cash,

Apply for unemployment benefits.

Federal workers can apply for unemployment compensation for federal employees (UCFE), which is administered by the states and the same as regular unemployment insurance benefits, the Department of Labor said. UCFE claims should be filed in the state where the federal employee’s last official duty station was located.

The amount you receive will be based on what you were earning and state maximums. States also determine the number of weeks UCFE is payable. UCFE is taxable income.

Look for a new full-time job or gig work to hold you over until you can land permanent work. Job sites like Indeed.com, TheLadders.com, USAJobs.gov, Monster.com, and CareerBuilder.com often refresh their listings daily.
If you think you won’t be able to meet your rent or mortgage obligations, consider state-run rental assistance programs or mortgage forbearance options through your lender, suggests District Capital Management, a fee-only financial planning company.
If you have trouble paying utilities, many companies will work with you or you can apply for government assistance through your state’s energy assistance program office for help with cooling and heating bills, the financial planning firm said.
If you can’t make your student loan payments or pay your kid’s tuition, contact your loan servicer or child’s financial aid office immediately to work out a plan and check your options. If you have a federal student loan, you may be able to lower the monthly amount by switching plans or pause payments through deferment or forbearance. Just make sure you carefully consider the pros and cons of each, the Department of Education says.

Will I lose health insurance?

The Federal Employees Health Benefits (FEHB) will be terminated on the last day of the pay period you separate from your job, but you’ll have an additional 31-day temporary extension of your coverage at no cost to you, according to the free government employee resource site federalpay.org.

During that time, as long as you weren’t fired for gross misconduct, you can convert to a non-group contract or apply for Temporary Continuation of Coverage (TCC) for an additional 18 months of coverage from your separation date, it said. If you choose TCC, you must pay the government and employee shares of your premium and an additional 2% fee for administrative costs.

To appeal or not appeal?

Once you’ve addressed your most immediate needs, consider your rights and whether you want to appeal your firing. Not all employees have an automatic right to appeal.

Office of Personnel Management resources can help you understand and navigate employment-related appeals.
If those aren’t clear, U.S. Representative Gerry Connolly (D-Virginia) suggests workers find and contact their unions. “A number of unions have a national consultation relationship with the Office of Personnel Management,” he said on his website.
If you have a qualified disability, Connolly also reminds those workers that federal agencies are required by law to provide reasonable accommodation, which they can learn more about here.
Understand what prohibited personnel practices (PPP) are and if they might relate to your situation. PPP examples include discrimination, retaliation, and improper hiring.

Take care of your mental health

While juggling all the practical issues related to a surprise firing, make sure to practice some self-care, experts say.

“Layoffs are always hard,” said Varpe. “Losing your job is like having a rug pulled out from under you, and for many federal workers right now, it can feel like the entire floor just disappeared. Being laid off at the same time as a few thousand of your peers into a job market that may no longer be employing people with your experience adds a whole new level of stress.”

Set aside some time to do things you enjoy, journal or talk to a trusted friend, they said. Or speak to a professional if you’re really struggling.

Some places to find help include Betterhelp.com, 988lifeline.org, Substance Abuse and Mental Health Services Administration, American Psychological Association’s Psychologist Locator, and National Register of Health Service Psychologists.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.