In a significant policy change, the U.S. Department of Labor (DOL) has issued notice of the cancellation of a number of employee benefit programs, such as mental health services and child care benefits, as part of overall cost-saving initiatives. The revisions, to be implemented this week, have prompted concern among workers and labor unions.
The reductions will eliminate programs such as Worklife4You, which provides parenting, eldercare, and work-life balance resources, and the Employee Assistance Program (EAP)—a vital mental health support service that offers confidential counseling and referrals for problems like stress, addiction, and personal crises.
The DOL's emergency backup dependent care benefit—which was previously suspended earlier this year—will officially terminate on Friday, May 10. The child care subsidy program also stopped operations on May 1.
The decision has faced strong opposition from employees and labor unions. The American Federation of Government Employees (AFGE), the union representing DOL workers, has announced that it will file a grievance. The union argues that ending the EAP violates both the collective bargaining agreement and current executive orders in place supporting mental health and addiction recovery within the federal workforce.
They are trying to make people quit.
Jefferson Suchman, President of an AFGE affiliate
This decision is not an isolated incident, but part of a broader restructuring effort led by the Department of Government Efficiency under the Trump administration. Other cost-saving initiatives include the cancellation of international labor grants and a pause on new hiring due to a government-wide hiring freeze.
The department has also introduced a “deferred resignation” scheme that incentivizes voluntary exits. According to internal reports, over 2,700 of the DOL’s approximately 14,600 employees have already opted into the program.
Former government officials and union representatives contend that the monetary benefits realized by ending such programs are minimal compared to the possible negative impact on employee productivity and morale.
The EAP, for example, is an essential tool for assisting employees who are dealing with personal or professional stressors—especially in a post-pandemic workplace where mental health issues are more prominent and urgent.
Adding to the confusion, some of the previously discontinued programs remain listed as benefits for prospective hires on the DOL's official website, even as the department posts no available positions.
It’s cruelty masquerading as fiscal responsibility.
Seth Harris, Former Acting Labor Secretary under the Obama administration
The elimination of mental health and child care benefits occurs at a time when employee wellness and work-life balance are key to retaining talent and maximizing organizational productivity. Experts caution that eliminating such support mechanisms may create more burnout, lower job satisfaction, and make it challenging to attract professional talent in the future.
The long-term effects are yet to be determined, but the shift highlights a pivotal debate among federal agencies: how to maintain budgetary restraint amid the increasing demand for a healthy, supported, and resilient workforce.
(Input from various sources)
(Rehash/Sakshi Thakar/MSM)
