VA Workforce Drops by 40,000: What It Means for Federal Managers
The Department of Veterans Affairs has experienced an unprecedented reduction in its workforce, losing an estimated 40,000 employees in fiscal year 2025, according to a report released by members of the Senate Veterans’ Affairs Committee. Lawmakers warn that the losses – especially in clinical and front-line positions – are already impacting care and benefits delivery for millions of veterans.
When issues arise, agency heads, Congress, and even the public may be looking to place blame – federal managers and supervisors are at risk of getting caught in the crosshairs. A professional liability insurance (PLI) policy from FEDS Protection can help give employees the peace of mind they need to do their jobs effectively in understaffed, high-visibility environments.
A Historic Workforce Reduction
The recent Senate report found that 2025 marked the first year the Department of Veterans Affairs saw a net loss of employees after years of growth. While VA leadership had planned to reduce staffing through voluntary separation incentives and attrition, the actual net decline exceeded 40,000 positions.
The vast majority of these departures – roughly 88 % – came from the Veterans Health Administration, which delivers care to veterans nationwide. Significant staffing losses included:
About 3,000 registered nurses
Approximately 1,000 physicians
Hundreds of custodial staff, social workers, and claims processors
Historically, VA workforce counts grew year over year, often adding more than 10,000 employees annually. The sudden contraction marks a dramatic operational shift.
Reported Impacts on Veterans
Lawmakers led by Sen. Richard Blumenthal (D-Conn.) argue that these staffing declines are affecting access, quality, and timeliness of care. VA facilities are reportedly still operating under staffing caps even after lifting a partial hiring freeze, slowing efforts to backfill positions.
Senate Democrats cite concerns about:
Longer appointment wait times
Greater strain on mental health services
Delays in processing benefits claims
Why This Matters for Federal Managers
Periods of workforce reduction and shifting policy priorities often bring increased professional risk and scrutiny for federal employees. This is especially true for supervisors and managers, whose decisions may become subject to expanded documentation requirements, heightened scrutiny, and increased external oversight from Congress. The operational environment at VA agencies may become more complex and exposed.
Heightened oversight means that routine managerial actions can trigger claims of mismanagement or misconduct that lead to investigations, administrative action, and possibly civil lawsuits, even when these decisions were made in good faith. When this happens, it is crucial that federal managers have the tools they need to protect themselves – FEDS Protection can help.
How FEDS Protects Federal Managers
At FEDS Protection, we recognize that federal employees – particularly supervisors, managers, and other leaders – face elevated exposure in today’s climate of heightened oversight and workforce change.
A FEDS Protection professional liability insurance (PLI) policy can provide peace of mind to federal employees.
As the PLI provider endorsed by leading federal manager associations, FEDS Protection offers coverage options that include:
Civil liability protection for attorney’s fees and indemnity costs
Legal representation coverage for administrative actions
Criminal defense cost coverage
Annual premiums start at $290, and many federal supervisors and managers are eligible for reimbursement of up to 50% of their policy cost through their agency.
To learn more about how a FEDS Protection PLI policy can help safeguard your role as a federal manager, visit www.fedsprotection.com or call (866) 955-FEDS, Monday–Friday, 8:30 a.m.–6 p.m. ET.
This article is provided for informational purposes only and does not constitute legal advice. Coverage is subject to policy terms, conditions, limitations, and exclusions.
