Losing a job is one of the most difficult things a person can go through. It brings stress about the future and financial uncertainty. Unfortunately, this is a very real problem for many in our country right now, especially if you are a federal worker. 

If you are a federal worker facing job loss, you’re likely worried about your future. While nothing can make losing a job easier, there are ways to protect yourself and your family as you start to figure out what’s next. This article outlines six steps to take as you move forward. Remember, this moment is hard, but it can also be the beginning of something new. And you don’t have to do it alone!

💼 Step 1: Understand Your Separation Notice

The first thing you need to do is understand your separation notice. Your SF-50, or Notice of Personal Action, is a record of everything important about your job. It includes your record of employment, verification of benefits, retirement calculations, and information about your pay and any promotions you’ve received. It will also include information about your dismissal. 

It’s important to be sure your SF-50 is accurate and to note three key pieces of information that are important if you apply for Federal jobs in the future. The key pieces of information to note are:

• Type of appointment
• Your highest grade held
• Your Tenure Status  (Temporary, Conditional, Permanent)

It’s important to keep multiple copies of your SF-50 so you don’t have to track it down later. As you’ll see in the other steps, you’ll need this paperwork often. Keep a few paper copies in a safe place, as well as a digital copy secured on your computer and an external thumb drive.

🧾 Step 2: Apply for Unemployment Benefits

One of the first things you’ll want to do when you lose your job is apply for unemployment benefits. Unemployment is a state-run program, so you will need to apply in the state where you last worked. You can find state-specific information about the unemployment office and application process at CareerOneStop. 

To apply for unemployment, your state may have specific requirements, but typically, you will need to provide personal and employment information. You will likely need to show:

• Personal Identification (Name, date of birth, social security number, address, and your driver’s license or other personal identification)
• Employment Information (the time frame can vary depending on the state, but often they’ll want the last 18 months of your employment)
• Your separation details (for federal workers, this is usually your SF-50)
• Banking Information (this is needed for you to receive benefits)

Once you have unemployment benefits, you’ll need to recertify weekly to maintain coverage. This lets your state know you qualify for continued coverage. You’ll need to complete this process with your state unemployment office. Usually, it can be completed online, over the phone, or through the mail. Here are the key pieces of information you will confirm:

• You were available to work
• You looked for work (a requirement in most states)
• You didn’t refuse any job offers
• You didn’t  earn wages for any part-time work (or if you did, how much did you earn)
• You didn’t receive any other benefits (vacation pay, disability, or severance)

There are a couple of other things to understand when applying for unemployment as a former federal employee. You’ll need your SF-08. This form discloses your unemployment insurance. It is typically given to you when you separate. It’s also important to note that your salary information may not be available immediately to your state. You may have to work with your state and your former agency to get this information.

Apply for unemployment benefits as soon as you can after your separation. Be patient and ask for help if you need it.

🏥 Step 3: Secure Health Coverage

Once you’ve secured unemployment, it’s time to take care of your health coverage. If you’d like to continue to have your current health coverage temporarily while you find a new job, there is an option for that. You may be familiar with COBRA (Consolidated Omnibus Budget Reconciliation Act). But COBRA is for private sector and state and local government employers. 

Instead, as federal employees, you’ll use TCC (Temporary Continuation of Coverage). This coverage allows former federal employees to maintain their Federal Employees Health Benefits (FEHB). Coverage can be extended to the individual who is separated from employment, their spouse, and any children who were covered by the plan. You will pay the entire premium plus a 2% administrative fee. And your coverage can be extended up to 18 months. To qualify, you must have had FEHB coverage for at least 1 day in the previous 31 days before you apply. You also need to apply for TCC within 60 days of your FEHB coverage ending.

Maintaining your employer-sponsored insurance for a while after you separate can be helpful. But if you want to find less expensive coverage or coverage that is more permanent, you’ll want to look on the ACA Marketplace exchange. There are subsidies available that can greatly lower your health insurance costs. Use the free tool by HealthSherpa to find the best and most affordable coverage that meets your needs.

🔁 Step 4: Explore Reemployment Options

Once you’re ready, it is time to start exploring your reemployment options. It’s important to consider all options and find the best fit.

As a former federal employee, there are some reemployment options that are available to you. 

Reinstatement Rights

First, federal employees have reinstatement rights. This means that as a former federal employee, you are eligible for non-competitive rehiring. If you meet the necessary requirements, you can apply for federal jobs open only to “status candidates”, be reappointed without competing under a public job announcement, and bypass some application requirements for new hires. To have reinstatement rights, you must have:

• Previously held a career-conditional (Tenure 2) or career (Tenure 1) appointment
• Separated from that position under honorable conditions

There are time limits on eligibility. Learn more here.

ICTAP Plans

Another avenue available to former federal employees is an Interagency Career Transition Assistance Plan, or ICTAP. ICTAP gives displaced federal employees a chance to transition into work with other federal agencies by giving them priority consideration in the hiring process. 

Federal employees who have lost their jobs, or are about to lose their jobs due to reduction in force (RIF), job abolishment, or agency downsizing or restructuring, can use ICTAPs to find other federal opportunities. Learn more here. 

If you want to find different job opportunities in your area, you can also research local job development programs and attend job fairs.

✍️ Step 5: Refresh Your Resume and Cover Letter (With AI Help!)

When you’re ready to start applying for jobs, you’ll want to put your best foot forward. This means refreshing your resume and cover letter. Be sure to add any new work experience or skills to your resume. You can even use AI to help you start the process more quickly.

Using ChatGPT or similar tools, you can make your resume and cover letter stand out from the crowd. Use these AI tools to:

• Rewrite your resume bullets using job descriptions
• Tailor your cover letter to a specific agency or employer
• Identify transferable skills from federal roles

In addition to ChatGPT, there are other AI tools that can help you on the job hunt. You can use:

• TealHQ is a free resume builder that will help you quickly tailor your resume to each job you’re applying for.
• Jobscan is an AI that can help optimize your resume for ATS or applicant tracking systems. Having your resume optimized for ATS helps it get passed the computer programs that review applications and into the hands of an actual person.

It’s important to remember that AI helps you get started, but you’ll still need to put in the work. Always review and customize the content—AI is a helper, not a substitute.

🧰 Step 6: Tap Into Free Support and Resources

As you search for a new job, remember you don’t have to do it alone. If you are a member of a union, it might offer assistance to help you get back on your feet. You can also look for employee assistance programs. A few resources that might help you make the transition are:

• WellFed offers support during career transitions
• CareerOneStop has online job boards, training, and many more services to help you as you figure out what’s next.

If you are struggling with food or shelter due to financial constraints, look for non-profits in your area. Local food banks, energy assistance programs, and housing assistance programs can help bridge the gap until you find another job. If you don’t know where to look in your local area, findhelp.org can help you identify resources by zip code.

Ready to pick up new skills to land your next dream job? There are online services you can use to help. LinkedIn Learning has free courses and learning paths. They also have paid courses that you may be able to access for free through your local library with a library card.

Similarly, Coursera, an online learning platform, offers new skills and certificates to help you level up. Some courses on Coursera are free. You can also audit the most popular courses. If you audit a course, you have access to all of the material, but your assignments won’t be graded, and you won’t get the certificate. If you want the certificate to add to your resume, you can often access Coursera courses for free through your public library.

✨ Conclusion: Moving Forward with Confidence

Losing your job doesn’t mean losing your purpose or your potential. You’re still you and you carry the lessons of your work with you. This is simply a time to regroup, reflect, and retool. You have options, and it’s important to fully explore them. Now is the perfect time to gain new skills and certifications to increase salary options. Take time to explore all paths open to you, and maybe even consider completely new areas of work. This may feel like the end, but it is simply a new beginning. You’ve got this!

For additional resources, visit https://feea.org/2025-resources-for-feds/.