The Federal Workforce Scam: Millions of “Private” Jobs Are Funded by Your Taxes
Three weeks ago, the Trump administration ordered a temporary freeze on all federal financial assistance that conflicts with its policy agenda. The directive primarily targeted non-governmental organizations (NGOs), those supposedly “independent” entities that in reality function as an extension of the federal government. The response from these groups was immediate: widespread panic, talk of layoffs, and complaints that they couldn’t keep their doors open without an endless flow of taxpayer dollars.
These NGOs, much like defense contractors and other federal grantees, pretend to be part of the private economy. But let’s call them what they really are—government-funded middlemen. They produce little of value, exist only because of government subsidies, and operate under the false pretense of being private enterprises. Now, with the federal money spigot tightening, these organizations are facing a reckoning.
The Real Federal Workforce: 10 Million Strong
The problem is far bigger than the 3 million direct-hire federal employees—who, by the way, are already a massive drain on taxpayers. The real shocker? More than 7.5 million workers were on the government payroll in 2023 through contracts and grants. That means for every so-called “official” government worker, there are more than two additional federal-funded workers disguised as private-sector employees.
Let’s put this in perspective:
- Federal grants funneled $300 billion into NGOs and other organizations last year.
- Federal contracts amounted to a staggering $759 billion—more than what the government spends on Medicare.
- State and local governments act as middlemen, redistributing another $750 billion in federal grants to their own pet projects and “private” partners.
Add it all up, and you’re looking at a trillion-dollar shadow workforce—one that is completely dependent on government handouts.
The “Private Sector” Illusion
The mainstream media, of course, is desperate to keep this charade going. The Washington Post and other mouthpieces insist on referring to these taxpayer-funded entities as “small businesses” or “entrepreneurs.” But when an “independent” contractor loses their job because the federal government stops paying their salary, what does that tell you?
The Post even highlighted the case of a USAID contractor who was laid off when her organization’s federal funding was put on hold. She promptly filed for unemployment and planned to move back in with her parents—who also work for the federal government and fear losing their jobs. That’s how deeply entrenched the government-dependent workforce has become.
And USAID is just one agency. Last month, the Trump administration took steps to shut it down, affecting more than 8,000 direct employees and thousands more NGO workers funded by its $43.8 billion budget.
The Fake Jobs Economy
The economic impact of these cuts is revealing something Washington doesn’t want you to see—that so-called “private-sector” job growth in recent years has been fueled by government spending and federal deficits.
If we correctly reclassify these 7.5 million federal contractors and grantees as government employees, the private-sector job market looks far weaker than the official numbers suggest. Suddenly, the much-celebrated “private sector boom” collapses by over 10 million jobs. What we’ve actually been seeing is a government-inflated workforce—not real, organic economic growth.
Time to End the Federal Jobs Scam
It’s encouraging that the Trump administration is taking steps to shrink the direct federal workforce, but that’s just a drop in the bucket. The real cuts need to come from the millions of disguised federal workers pretending to be private employees.
And if these people are truly as skilled and hardworking as the government claims, then surely, the free market will absorb them in no time. Right?
There’s only one way to find out.
Protect Yourself from the Next Financial Crisis
As the federal money machine contracts, expect economic instability, job losses, and desperate government intervention to keep the illusion of prosperity alive. You don’t have to be a victim of their reckless spending.
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