Thousands of experienced federal employees dismissed under the Trump administration’s push for government downsizing are now being courted by private corporations, state governments, and potentially even foreign adversaries, prompting growing concerns among labor and national security experts.
The mass firings stem from a sweeping initiative by the Department of Government Efficiency (DOGE), led by Elon Musk, which was established to “streamline” federal agencies and eliminate what the administration deemed bureaucratic waste. The result: a wide-scale dismissal of federal employees, including scientists, veterans’ social workers, intelligence analysts, and foreign relations professionals — many with decades of institutional knowledge and access to sensitive government data.
Now, that same experience is becoming a valuable resource for employers outside the federal system — and a potential vulnerability for the United States.
According to former Department of Homeland Security official and ABC News contributor John Cohen, the situation presents a ripe opportunity for foreign intelligence services to step in.
“From an intelligence and law enforcement perspective, the potential for foreign intelligence forces to recruit government workers is hot,” Cohen said. “Disgruntled, unemployed, and highly skilled — these workers are prime targets.”
Cohen warns that even workers without access to classified information may still pose risks due to their knowledge of internal operations, agency leadership, and federal infrastructure. “It’s not just classified information that’s valuable. It’s knowing how the system works,” he added.
Labor experts say the talent pool released by DOGE is also attracting significant attention from the private sector. Victor Narro, a labor professor at the UCLA Labor Center, notes that many of those fired left higher-paying private jobs for public service.
“These workers have advanced degrees, training from top universities, and turned down lucrative private careers to serve the public,” Narro said. “Now, private firms see their value — and they’re recruiting.”
Some experts suggest that these professionals could even form their own companies. Billionaire entrepreneur Mark Cuban floated such an idea earlier this month in a viral post, proposing that the dismissed workers create a consulting firm to fix the problems DOGE may eventually cause.
“They’ll have to hire your company to fix it,” Cuban wrote. “But on your terms. I’m happy to invest and/or help.”
While Cuban’s offer has not moved forward publicly, Cohen warned that not all offers will come with good intentions. “Foreign governments have historically used job offers as a recruitment tactic. The risk is real, especially when people are angry and vulnerable.”
Foreign adversaries — including China, Russia, and nations in the Middle East — may exploit the discontent by offering jobs, research grants, or consulting opportunities that seem legitimate but are designed to extract intelligence or strategic insights.
Massachusetts Governor Maura Healey pointed to the threat during a press briefing, stating that foreign actors have already approached U.S. researchers, offering lab space and funding in exchange for relocating.
“They’re saying, ‘Come to our country. We’ll give you a lab, a staff, and funding,’” Healey said. “That’s not putting America first.”
Adding to the complexity is the fact that many of these former employees may not even know they’re working for foreign-controlled entities. Cohen noted that foreign governments often operate through front companies or partner with legitimate U.S. firms to conceal their involvement.
“It could be as simple as offering someone a speaking gig at a conference,” Cohen explained. “It starts small, but it can evolve into a much larger relationship.”
While national security risks are mounting, state and local governments are seeing opportunity. In early March, New York Governor Kathy Hochul launched a “You’re Hired” campaign to attract dismissed federal workers. The campaign includes job postings across multiple state agencies and recruitment ads in major transit hubs like Union Station in Washington, D.C.
“I need technologists, engineers, attorneys, healthcare workers — people with deep experience and a commitment to service,” Hochul said during a press conference. “We want them in New York.”
As of mid-March, more than 200 former federal workers had signed up for employment webinars hosted by the New York State Department of Labor. Similar initiatives are underway in Maryland and Virginia, led by Governors Wes Moore and Glenn Youngkin, respectively.
Still, experts say not every state has the budget or infrastructure to absorb the influx of talent. “It depends on the state’s capacity,” Narro explained. “New York might be able to bring in a lot of people. Iowa? Maybe not.”
Trump’s proposal to shift more federal responsibilities to the states, particularly in education and healthcare, has created further uncertainty. Experts say the lack of guidance on how states are expected to fund these new responsibilities has created a challenging landscape for both job seekers and recruiters.
“It’s great that states want to help,” Cohen said. “But if they can’t follow through, it’s just going to create more instability.”
Meanwhile, legal challenges to the mass terminations are making their way through the courts. In some cases, firings have been halted or reversed. But Narro argues that the damage may already be done.
“People need stability,” he said. “They have families to support. If they feel like they can’t depend on their public service jobs, they may leave permanently — and that’s a loss for all of us.”
Even if a future administration rolls back the firings or reinstitutes some of the dismissed positions, Narro warns that the long-term harm to morale and trust in public service may be irreversible.
“In the end, the public loses out the most,” he said. “This will discourage talented people from ever choosing public service again.”
