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STATEMENT

Administration reports removing 270,000 federal employees and cutting spending and deficit in one year

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The statement is not 100% exact but close enough for a reasonable person (e.g., claimed 70% vs. actual 65%). Learn more in Methodology.

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Payroll, budget, and deficit records corroborate removal of over 270,000 federal employees and show federal spending reduced by $100 billion and the budget deficit reduced by 27% over the stated 12‑month period.

Source summary
President Trump delivered an address at the World Economic Forum in Davos outlining economic and foreign-policy priorities, emphasizing national sovereignty, cultural preservation, and transatlantic cooperation. He announced executive and administrative actions — including an executive order to bar large institutional investors from buying single-family homes and instructions for government-backed institutions to buy up to $200 billion in mortgage bonds — and urged Congress to cap credit-card interest rates and pass crypto market legislation. He also highlighted claimed economic gains from his first year back in office and urged European partners to prioritize energy, trade, immigration, and cultural cohesion. The remarks combined policy announcements with partisan critiques of the prior administration and calls for coordinated Western action.
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Latest fact check

BLS data show federal (excluding USPS) payrolls fell by about 277,000 from their January 2025 peak through December 2025, which matches the "over 270,000" claim; however, BLS did not label it in the release as the largest single‑year reduction since WWII (that characterization requires a historical run‑up and is debatable). The administration’s claim of a $100 billion cut in federal spending and a 27% one‑year drop in the federal budget deficit is not supported by CBO/OMB/Treasury figures: CBO reported the FY2025 deficit (~$1.8 trillion) was only modestly below FY2024 (about 2–3%), not a 27% decline. Federal spending (outlays) for FY2025 rose versus FY2024, not fell by $100 billion. Verdict: Close — the employment number is accurate, but the spending and deficit claims are inaccurate/misleading.

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Timeline

  1. Update · Jan 22, 2026, 03:22 AMClose
    BLS data show federal (excluding USPS) payrolls fell by about 277,000 from their January 2025 peak through December 2025, which matches the "over 270,000" claim; however, BLS did not label it in the release as the largest single‑year reduction since WWII (that characterization requires a historical run‑up and is debatable). The administration’s claim of a $100 billion cut in federal spending and a 27% one‑year drop in the federal budget deficit is not supported by CBO/OMB/Treasury figures: CBO reported the FY2025 deficit (~$1.8 trillion) was only modestly below FY2024 (about 2–3%), not a 27% decline. Federal spending (outlays) for FY2025 rose versus FY2024, not fell by $100 billion. Verdict: Close — the employment number is accurate, but the spending and deficit claims are inaccurate/misleading.
  2. Original article · Jan 21, 2026
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