Will Remote Work End for Federal Employees
This article breaks down the current policies, the data behind them, and what these changes mean for both federal agencies and the broader workforce.
The Current State of Federal Remote Work
As of September 2025, remote work in federal agencies looks very different from a year ago. In January 2025, the President directed executive agencies to require all employees to return to full-time, in-office work [1]. Yet, subsequent guidance has carved out exceptions that keep some forms of remote work alive.
The scale is significant. In June 2024, 207,710 federal employees worked remotely across the 24 Chief Financial Officers Act agencies, representing 9% of the civilian workforce [1]. These workers were not concentrated in Washington, D.C., but spread across all 50 states and 84% of counties nationwide.
That means agencies were suddenly faced with the challenge of bringing thousands of distributed employees back into physical offices.
What the Data Shows About Remote Work
Evidence continues to support the value of remote work for employers and employees. A May 2025 Government Accountability Office (GAO) report found that remote work can [2]:
- Improve recruitment and retention
- Generate significant cost savings
- Increase productivity across teams
- Reduce quit rates by one-third in some organizations
- Cut office expenses in half for some employers
Federal agencies themselves acknowledged that remote work supported recruitment and retention [1]. This creates a clear tension: policy pushing for return-to-office versus data proving the benefits of remote work.
The Practical Impact on Federal Agencies
Policy changes have created immediate operational challenges. In March 2025, agencies paused office downsizing plans that had been in motion based on remote work trends [1]. Suddenly, office space once considered unnecessary had to be retained.
The Office of Personnel Management (OPM) also withdrew its August 2024 guidance requiring agencies to evaluate the impact of remote work [1]. This suggests the issue has become politically sensitive, complicating efforts to assess its long-term value.
Telework Policies and Exceptions
Despite restrictions, remote work has not been eliminated. Federal policy still allows for:
Regular Telework
- Requires a written agreement [3]
- Employees must meet eligibility criteria
- Subject to supervisor approval
Situational Telework
- Weather-related closures [3]
- Emergency preparedness
- Reasonable accommodations under disability law
Mobile Workers
- Travel-intensive roles
- Field-based assignments
- Positions with unique operational needs
The difference now is that these exceptions are interpreted more narrowly than before.
Broader Remote Work Trends
While federal policy leans toward in-person work, the wider labor market continues to embrace flexibility. In the first quarter of 2024, 35.5 million people teleworked in the United States, accounting for 22.9% of the workforce, up from 19.6% the year before [4].
For private companies, this presents an opportunity. Organizations that support remote work gain a competitive edge in attracting talent. As federal agencies restrict remote options, private-sector employers offering flexibility may become more appealing to skilled workers.
International Comparisons
The U.S. approach differs from other countries. Canada’s federal public service, for example, has adopted a hybrid model. Employees must work on-site at least three days per week, while executives are required to be in the office four days [5].
These models reflect a recognition that managing distributed teams requires different strategies than traditional in-office oversight.
What This Means for Global Remote Work
Federal restrictions may suggest a shift away from remote work, but private sector adoption continues to expand. Roles that can be performed anywhere are increasingly untethered from geography.
For global employers, this creates opportunity. Former federal employees who value flexibility may seek positions with private companies that allow remote work. Businesses using Ontop’s global payroll solutions can position themselves to attract this talent by offering competitive remote arrangements.
Looking Ahead: Is Remote Work Ending?
A full elimination of remote work in federal agencies seems unlikely. Several factors will sustain at least partial flexibility:
- Operational Needs: Certain roles require location independence
- Talent Competition: Agencies must compete with private employers
- Cost Pressures: Maintaining large office spaces is expensive
- Emergency Preparedness: Distributed teams provide resilience in crises
Rather than disappearing, remote work in federal employment is undergoing recalibration. Policies may tighten, but practical needs will continue to preserve some level of flexibility.
The Bottom Line
Federal remote work policies are more restrictive than before, but “ending” overstates the case. Agencies face the challenge of reconciling political directives with operational realities.
For the global workforce, these policy changes are one piece of a larger puzzle. Remote work remains attractive for reasons that transcend federal decisions: access to worldwide talent, cost efficiency, and better work-life balance.
If you are building distributed teams, comprehensive compliance and payroll solutions can help you navigate changing landscapes while keeping flexibility for employees.
The future of work will not be dictated by a single employer. It will be shaped by how organizations and workers choose to balance productivity, flexibility, and geography.
Interested in building your global remote team? Book a demo to see how Ontop helps companies operate compliantly in 150+ countries.
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