NASA Layoffs Frozen Until FY 2026 Budget Passes: Job Security Boost for Federal Employees

The Saving NASA’s Workforce Act is a straightforward bill with a big impact on thousands of federal employees: it slams the brakes on layoffs at the National Aeronautics and Space Administration (NASA). Specifically, Section 2 puts a temporary moratorium—a freeze—on any reduction in force (RIF), which is the bureaucratic term for layoffs.

The Budgetary Lifeline

What triggers the end of the freeze? It’s tied directly to the federal budget process. NASA cannot conduct any general layoffs until Congress passes the full, official budget for Fiscal Year (FY) 2026. This is a huge deal because Congress often fails to pass budgets on time, leading to months where agencies run on temporary funding measures called Continuing Resolutions (CRs). CRs can create massive uncertainty, often leading agencies to plan for RIFs just in case funding dips. This bill essentially tells NASA employees, “Don’t worry about a budget delay causing your job loss, at least not until FY 2026 is settled.”

Job Security vs. Management Flexibility

For the average NASA employee—whether they are a scientist, an engineer, or administrative staff—this means immediate job security. They can focus on their work, like the Artemis program or climate research, without the constant stress of potential budget-driven cuts hanging over their heads. This stability helps NASA retain critical institutional knowledge, which is vital for long-term, complex projects.

However, this protection isn't a blanket shield for everyone. The bill is clear that NASA retains the ability to fire employees for cause. The agency can still terminate people for misconduct, poor performance (inefficiency), or delinquency, following standard federal rules outlined in Chapter 75 of Title 5 of the U.S. Code. So, if you’re a career Senior Executive Service appointee or a competitive service employee, you’re safe from budget cuts, but you still have to show up and do your job well.

The Trade-Off for Taxpayers

While this is a win for NASA’s workforce, it creates a practical challenge for NASA management and potentially for taxpayers. By removing the ability to conduct general workforce reductions until the FY 2026 budget is finalized, management loses flexibility to streamline operations or cut redundant positions based on efficiency needs before that date. If there are positions that are genuinely unnecessary, the agency is required to keep those individuals on the payroll until the moratorium lifts or until they can prove a case for termination based on poor performance, which is a much higher administrative hurdle than a general RIF. This means the immediate cost of retaining potentially unnecessary personnel falls to the taxpayer in the short term, prioritizing workforce stability over immediate management efficiency.