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Federal cuts jeopardize Michiganders

The federal government is the largest employer in the state of Michigan. The government employs over 54,000 people in the state alone, more than any of “The Big Three” automakers or any of the health systems here in the state. However, the federal government doesn’t have expansive marketing teams for the Department of the Interior or for Veterans Affairs (VA). Most of the time, unless we personally use a government service, it is easy to forget about these entities that provide important services. Now, the Department of Government Efficiency (DOGE) seeks to cut jobs across the country, threatening the well-being of thousands of Michigan families and potentially putting critical services at risk.

Federal workers are often stereotyped as faceless bureaucrats sitting in grey office buildings. In truth, these workers provide crucial services to our communities.

For example, over 11,000 of Michigan’s federal workers are employed at the Veterans Health Administration, providing health care for Michigan veterans. Over 2,000 Department of Agriculture and Interior employees in Michigan monitor wildlife, national parks, and agriculture; ensuring Michigan’s tourism, hunting, fishing, and farming are protected. And there are nearly 12,000 postal workers in the state who deliver mail, including to rural areas other delivery services might not.

Since DOGE began its cuts, all of these agencies have been targeted. The VA is being told to cut between 70,000-80,000 jobs across the country. Numerous national park employees have already been let go, and further cuts to the Department of Agriculture and the Interior cannot be ruled out. Now DOGE and others in the administration are toying with the idea of privatizing the U.S. Postal Service (USPS).

While it is unclear how many jobs will ultimately be targeted by DOGE, some agencies, such as the VA, have been targeted with a 17% staff reduction, while other agencies have been threatened with complete elimination. The overall impact could be devastating. If Michigan lost 20% of its federal jobs, it would be almost the same as two major automotive assembly plants closing in terms of job loss (meaning over 10,000 Michigan families would lose an income). All of this is happening while family budgets are already stressed amidst growing economic uncertainty.

In Alpena County, federal jobs make up 3% of all employment. The county’s 6.8% unemployment rate is already above the state average. The exhaustion rate of unemployment benefits in the county is also above the state average at 35%, meaning it takes longer than 20 weeks for 35% of people to find a new job after they lose a job. All of this means cuts to federal jobs could further increase unemployment in the county and reduce the number of jobs in the area. A devastating prospect, as Michigan families are already financially stressed, with 48% of Alpena County’s working families struggling to make ends meet.

However, these cuts go beyond economic impacts. According to the VA, in 2023, 8% of Alpena County, 12% of Alcona, 10% of Montmorency, and 9% of Presque Isle residents were veterans — a much higher proportion than the state total of 5.8%. This means cuts to departments such as the VA would be even more detrimental to these northern counties, putting veterans’ access to health care services at risk.

Moreover, large shipping companies are not always able to deliver to certain rural areas, and often, if a location is off a main route, packages will be handed off to the USPS for the final delivery. Without the USPS, people living in rural areas could find themselves without mail services or be forced to drive to a city to pick up mail and packages.

Federal workers often work behind the scenes. When we camp in the summer or hunt in the fall, it is easy to forget the state and federal workers that safeguard Michigan wildlife. For many, health care for veterans feels like something that should be provided without question. These proposed federal job cuts threaten the well-being of all Michiganders, and it is important we let our members of Congress know we need more good jobs, not fewer.

Patrick Schaefer is the economic security policy analyst with the Michigan League for Public Policy.

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