The war over federal workers continues

Summary

Marketplace Morning Report: "The War Over Federal Workers Continues"

Release Date: March 14, 2025
Host: Marketplace
Reporter for This Episode: Sabri Benishore
Guest: Nancy Marshall Genzer, Marketplace Contributor
Additional Contributors: Peggy Flanagan, Lieutenant Governor of Minnesota; Jackie Berry, Minneapolis Realtor; Lee Hawkins, Marketplace Special Correspondent

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Introduction

In the March 14, 2025 episode of Marketplace Morning Report, host Sabri Benishore delves into the ongoing conflicts surrounding federal workforce reductions under the Trump administration. The episode meticulously examines recent judicial decisions, administrative actions affecting various federal agencies, and broader implications for the federal workforce. Additionally, the report highlights the "Unlocking the Gates" series, which explores the enduring effects of historical housing discrimination in Minnesota.

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Judicial Actions and Federal Workforce Layoffs

Sabri Benishore begins by addressing a critical legal development:

"[00:01] Sabri Benishore: The war against the federal workforce continues for a marketplace. I'm Sabri Benishore in for David Brancaccio. Two federal judges now have ordered the Trump administration to rehire fired federal workers who are on probation. The judges say the White House didn't have the authority for mass layoffs and didn't follow the law."

This ruling marks a significant setback for the Trump administration, emphasizing that the mass layoffs lacked legal justification and proper procedure. Nancy Marshall Genzer provides further insights into the repercussions of these actions.

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Postmaster General Louis DeJoy and Workforce Reductions

The conversation shifts to the United States Postal Service (USPS), where Nancy Marshall Genzer elaborates on recent developments:

"[00:37] Nancy Marshall Genzer: Yeah, DeJoy sent a letter to Congress about this yesterday. He says Doge will help the Postal Service identify further efficiencies, adding that Doge has been, quote, gracious enough to ask for the big problems they can help with. And DeJoy says he's already reduced positions at Postal Service headquarters by 20% and plans to cut another 10,000 workers overall in the next 30 days through a voluntary early retirement program."

Louis DeJoy, the USPS Postmaster General, has initiated a partnership with Elon Musk's company, Doge, aiming to streamline USPS operations. This collaboration has led to significant workforce reductions:

"- DeJoy has reduced USPS headquarters positions by 20% and plans to cut an additional 10,000 workers via voluntary early retirement within a month."

Despite these promises, questions arise regarding the tangible savings and efficiency gains from such measures.

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Impact on the Food and Drug Administration (FDA)

Sabri probes into workforce cuts beyond the USPS:

"[01:05] Sabri Benishore: The Trump administration is also cutting workers who are not actually paid directly by taxpayers. What is going on there?"

Nancy Marshall Genzer responds:

"[01:14] Nancy Marshall Genzer: Yes, some of these workers are at the Food and Drug Administration. Reuters is reporting the salaries of most of one group of about 200 fired FDA workers were actually paid through user fees from medical device makers."

This revelation underscores the administration's strategy to reduce federal workforce costs even in positions not directly funded by taxpayers, potentially undermining critical regulatory functions without achieving genuine savings.

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FDA Office Space Crisis

The conversation further explores logistical challenges within the FDA:

"[01:35] Nancy Marshall Genzer: Not good. Apparently. The FDA's headquarters is in Silver Spring, Maryland. Some FDA workers told Reuters they haven't been guaranteed parking or office space. And this all comes as Doge says, it's terminated more than 700 leases overall for federal office space, including 30 FDA locations."

The termination of over 700 federal office leases, including numerous FDA sites, has led to severe disruptions:

"- FDA employees report lack of essential amenities like parking and secure office spaces, exacerbating the agency's operational difficulties."

These measures not only impair the FDA's functionality but also reflect poorly on the administration's handling of federal workforce management.

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"Unlocking the Gates" Series: Addressing Historical Housing Discrimination

Transitioning from federal workforce issues, Marketplace shines a spotlight on Minnesota's struggle with the legacy of racial covenants through its "Unlocking the Gates" series.

Sabri Benishore introduces the segment:

"[02:46] Sabri Benishore: In our latest series, Unlocking the Gates, Marketplace special correspondent Lee Hawkins explores the lasting impact of housing discrimination in Minnesota, where one instrument of discrimination known as racial covenants were first devised."

Lee Hawkins discusses the persistence of historical injustices:

"[03:17] Lee Hawkins: I've seen them. You've seen them. These covenants, even though they're illegal, they're there in some cases. And you think they still play out in widening the gap between rich and."

Peggy Flanagan, Minnesota's Lieutenant Governor, emphasizes the enduring consequences:

"[03:28] Peggy Flanagan: Poor when you're thinking of it by race, oh, 100%. Because those initial limitations that were put on the black community played out through the generations because the attitudes were still there and there was still a real resistance to sell land to black people."

Jackie Berry, a Minneapolis Realtor, articulates the economic ripple effects:

"[03:50] Jackie Berry: If you think about a family being excluded from home ownership, that means now they don't have the equity within their home to help make other moves for their family."

The episode explores legislative and community responses aimed at rectifying these historical wrongs:

"[04:42] Unnamed Legislator: Our legislation that we passed in 2023 was $150 million directed at first time home buyers and black, indigenous and communities of color. We see that, I think, as a down payment right on the work needs to happen. I think when we increase homeownership rates within our communities, it's a benefit to the state as a whole."

Realtors, including Jackie Berry, advocate for enhanced training to prevent future discrimination:

"[05:32] Jackie Berry: We need to increase our training and development in Minnesota. A Realtor has to complete fair housing credits every two years, meaning that they're getting some type of education related to learning about housing discrimination and how to avoid it, how to represent clients equitably understanding rules and regulations around fair housing."

Peggy Flanagan concludes with a message of hope and commitment:

"[05:53] Peggy Flanagan: One of the things I love about this series, David, is it just doesn't talk about the history and the problem of racial covenants, but it talks about how there were people even in those times who did the right thing. And it wasn't necessarily about race as it was about justice. And I think that that's what's important here. We can't change the past, but we can certain the present and the future. And all of these people in some way have committed themselves to this issue and to talk about it in modern times and acknowledge the modern implication was what we wanted to do for people to know how this affects so many people across the country."

Lee Hawkins encourages listeners to engage deeper with the series:

"[06:33] Lee Hawkins: Marketplace special correspondent Lee Hawkins. You can hear the entire Unlocking the Gates series on our website, marketplace.org Lee, as always, thank you."

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Conclusion

The episode concludes with Sabri Benishore summarizing the discussions and highlighting ongoing efforts to address both federal workforce challenges and historical housing discrimination. The Marketplace Morning Report effectively bridges contemporary political struggles with deep-seated societal issues, offering listeners a comprehensive overview of critical developments shaping the federal workforce and Minnesota's housing landscape.

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Additional Information

While the primary focus was on federal workforce issues and housing discrimination in Minnesota, the episode also briefly touches upon broader economic sentiments:

"[07:06] Janelie Espinal: Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our feels about money. ... Listen to Financially Inclined wherever you get your podcasts."

This segment underscores the interconnectedness of federal policies, economic stability, and personal financial well-being.

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Disclaimer: This summary is based on the provided transcript and podcast information. All timestamps correspond to the transcript sections and are included to attribute specific quotes accurately.

Transcript

[Sabri Benishore]

The war against the federal workforce continues for a marketplace. I'm Sabri Benishore in for David Brancaccio. Two federal judges now have ordered the Trump administration to rehire fired federal workers who are on probation. The judges say the White House didn't have the authority for mass layoffs and didn't follow the law. But there have been other developments for the federal workforce. Marketplace's Nancy Marshall Genzer joins us to talk about them. Hi, Nancy.

[Nancy Marshall Genzer]

Good morning.

[Sabri Benishore]

So let's talk about the post office. First Postmaster General Louis DeJoy says he has signed an agreement with Elon Musk's Doge. What is that all about?

[Nancy Marshall Genzer]

Yeah, DeJoy sent a letter to Congress about this yesterday. He says Doge will help the Postal Service identify further efficiencies, adding that Doge has been, quote, gracious enough to ask for the big problems they can help with. And DeJoy says he's already reduced positions at Postal Service headquarters by 20% and plans to cut another 10,000 workers overall in the next 30 days through a voluntary early retirement program.

[Sabri Benishore]

The Trump administration is also cutting workers who are not actually paid directly by taxpayers. What is going on there?

[Nancy Marshall Genzer]

Yes, some of these workers are at the Food and Drug Administration. Reuters is reporting the salaries of most of one group of about 200 fired FDA workers were actually paid through user fees from medical device makers.

[Sabri Benishore]

Yeah, no savings there. So, also Speaking of the FDA, how's their office space situation?

[Nancy Marshall Genzer]

Not good. Apparently. The FDA's headquarters is in Silver Spring, Maryland. Some FDA workers told Reuters they haven't been guaranteed parking or office space. And this all comes as Doge says, it's terminated more than 700 leases overall for federal office space, including 30 FDA locations.

[Sabri Benishore]

All right. Thanks, Nancy.

[Nancy Marshall Genzer]

You're welcome.

[David Brancaccio]

If you want to be savvy about the economy, the Marketplace newsletter is just what you need. Every Friday, you'll get explainers and analysis that make sense of everything from the moving markets to grocery prices. No jargon, no hype, just smart takes delivered to your inbox. Sign up [e-mail] subscribe.

[Sabri Benishore]

In our latest series, Unlocking the Gates, Marketplace special correspondent Lee Hawkins explores the lasting impact of housing discrimination in Minnesota, where one instrument of discrimination known as racial covenants were first devised. Racial covenants were contracts added to property deeds that prevented black people and other people of color from purchasing, leasing or occupying a property. These clauses were officially outlawed in the 1968 Fair Housing act, but their impact can still be felt today. Marketplace's David Brancaccio spoke with Lee for more.

[Lee Hawkins]

I've seen them. You've seen them. These covenants, even though they're illegal, they're there in some cases. And you think they still play out in widening the gap between rich and.

[Peggy Flanagan]

Poor when you're thinking of it by race, oh, 100%. Because those initial limitations that were put on the black community played out through the generations because the attitudes were still there and there was still a real resistance to sell land to black people. I spoke with Minneapolis Realtor Jackie Berry, who explained it to me this way.

[Jackie Berry]

If you think about a family being excluded from home ownership, that means now they don't have the equity within their home to help make other moves for their family.

[Lee Hawkins]

Now, if you find you have a racial covenant in the deed on the house that you're interested in buying or the house you already bought in Minnesota, among other places, you can apply to have it discharged. But you went pretty high up in the Minnesota government, the office of the Lieutenant Governor, Peggy Flanagan, to hear about what's being done to address the structural problem that underlies this. Right, Lee?

[Peggy Flanagan]

Yes, and I think it was critical to do that because one of the early pioneers of racial covenants policies was a lieutenant governor of the state of Minnesota. Here we are in today's Times talking to Lieutenant Governor Flanagan. And so she's made this a cornerstone of her administration.

[Unnamed Legislator]

Our legislation that we passed in 2023 was $150 million directed at first time home buyers and black, indigenous and communities of color. We see that, I think, as a down payment right on the work needs to happen. I think when we increase homeownership rates within our communities, it's a benefit to the state as a whole.

[Lee Hawkins]

And you were talking to Realtors with their experience on the ground actually showing homes to prospective buyers, and they had some interesting ideas.

[Peggy Flanagan]

Yes, there were a variety of things that Minneapolis area Realtors talked about around the time of George Floyd to actually bring more equity in the real estate industry. Realtor Jackie Berry, who we heard from earlier, sits on the board of Minneapolis Area Realtors, and here's her prescription.

[Jackie Berry]

We need to increase our training and development in Minnesota. A Realtor has to complete fair housing credits every two years, meaning that they're getting some type of education related to learning about housing discrimination and how to avoid it, how to represent clients equitably understanding rules and regulations around fair housing.

[Peggy Flanagan]

One of the things I love about this series, David, is it just doesn't talk about the history and the problem of racial covenants, but it talks about how there were people even in those times who did the right thing. And it wasn't necessarily about race as it was about justice. And I think that that's what's important here. We can't change the past, but we can certain the present and the future. And all of these people in some way have committed themselves to this issue and to talk about it in modern times and acknowledge the modern implication was what we wanted to do for people to know how this affects so many people across the country.

[Lee Hawkins]

Marketplace special correspondent Lee Hawkins. You can hear the entire Unlocking the Gates series on our website, marketplace.org Lee, as always, thank you.

[Peggy Flanagan]

Thank you so much, David.

[Sabri Benishore]

And that was Marketplace's David Brancaccio there in New York. I'm Sabri Benishore with the Marketplace Morning Report from apm, American Public Media.

[Janelie Espinal]

Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our feels about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance. I'm Janelie Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money and friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to Financially Inclined wherever you get your podcasts.