IRS Workers in Covington Face Layoffs Amid Government Shutdown

Workers at the IRS office in Covington, one of the largest employers in the area, are facing potential layoffs due to a federal government shutdown that began on October 1, 2024. The IRS had approximately 2,600 employees in Covington as of June 30, 2024, according to the city’s annual financial report. This shutdown has led to the issuance of Reduction in Force (RIF) notices, raising concerns about the economic impact on both employees and the local community.

The IRS office in Covington ranks second only to Fidelity in terms of employment, and any job cuts could significantly affect the city’s payroll tax revenue. The shutdown stems from ongoing disagreements in Congress over government spending, particularly regarding healthcare subsidies and foreign aid. These disputes resulted in a deadlock, preventing any funding bill from passing before the September 30 deadline.

Democratic lawmakers are insisting that any agreement to reopen the government must address their healthcare demands, while Republican House Speaker Mike Johnson has stated that he will not engage in negotiations until Democrats cease their demands and agree to reopen. Democrats seek an extension of healthcare subsidies initially established in 2021 and reversed cuts to Medicaid that were part of a spending bill passed earlier this summer.

As of now, the exact number of employees affected by RIF notices remains unclear. However, demonstrations in Covington indicate that many from the office’s IT and collections support staff have received notifications. Essential personnel are continuing their work despite the furlough.

On October 16, 2025, the National Treasury Employees Union organized a demonstration against the government shutdown, with support from allied unions. IT specialist Mark Brooks, who was RIFed on October 10, expressed his frustration, noting that he was only three years away from full retirement benefits. “I’m in a position where if you’re going to cut my job, and I have no other choice, I’ll just retire and take my pension and walk away,” Brooks stated.

Following the shutdown announcement, the federal Office of Management and Budget indicated that over 4,000 federal workers could face termination. U.S. District Judge Susan Illston temporarily blocked these layoffs, citing concerns that the cuts were politically motivated and lacked sufficient justification.

Demonstrators in Covington highlighted the Government Employee Fair Treatment Act of 2019, which guarantees back pay for furloughed federal employees. This legislation was signed into law during former President Donald Trump’s administration following a previous government shutdown. Despite these protections, the current administration has suggested that back pay may not be guaranteed for furloughed workers, leading to increased anxiety among employees.

According to Danielle Harper, a lead collection representative who has worked at the Covington office for 17 years, the uncertainty surrounding job security has created a challenging environment. While Harper has not been RIFed, she described the situation as inconsistent, with daily changes in information. “Every day is something different. One minute, we’re told one thing, and then you come to work the next day, and it’s changed. So, there’s no consistency,” she said.

Harper emphasized the importance of focusing on the broader implications of the shutdown rather than partisan conflicts. “We’re not here to take money. What we do helps fund the government. It helps fund our country,” she remarked.

The situation in Covington reflects the broader impact of the federal shutdown on employees and the economy, highlighting the urgent need for resolution in Congress. As negotiations continue, the lives of thousands of federal workers hang in the balance, underscoring the intersection of public service and political strife.