The Trump administration is blurring lines between the public and private sector workforces, and OPM Director Scott Kupor refuses to rule out conflict of interest risks

(SeaPRwire) –   President Donald Trump’s second-term appointments established a record for the wealthiest presidential administration in modern history, an early sign that Trump was comfortable integrating business magnates into his inner political circle. These individuals included Tesla CEO Elon Musk, with a net worth of $805 billion, appointed to lead the Department of Government Efficiency (DOGE), as well as Commerce Secretary Howard Lutnick, the longtime CEO of financial services firm Cantor Fitzgerald.

With Trump himself being a real estate developer with significant ties to cryptocurrencies, it is perhaps unsurprising that among the priorities for developing the government workforce would be to create more avenues for private sector workers, and to establish a more permeable boundary between the two sectors. Office of Personnel Management Director Scott Kupor—the former managing partner at venture capital giant Andreessen Horowitz before joining the Trump administration in 2025—has been tasked with implementing this vision. 

“One of the things that I’m hoping to improve upon is attracting individuals from the private sector—who have spent their entire careers there—to also dedicate a couple of years to government service at some point, and gain new insights,” Kupor told .

Strengthening Private Sector Connections

Kupor has been instrumental in developing several initiatives aimed at welcoming private sector workers into government. In December of last year, OPM launched the U.S. Tech Force, a program designed to hire 1,000 engineers and specialists to enhance AI infrastructure within the government. According to the government website, the program is a “collaboration with leading technology companies,” including Amazon Web Services, Apple, Google, Nvidia, Palantir, OpenAI, and Oracle, among others.

After two years of participation in the program, Tech Force members are eligible to apply for full-time positions with these companies, which have committed to considering those who completed the initiative for employment. These companies can similarly nominate their own employees to participate in the program.

OPM rehired Amanda Scales, former OPM chief of staff and DOGE leader, who previously headed talent acquisition at Musk’s xAI, to help scale the U.S. Tech Force.

Kupor stated he wants these opportunities for government roles to effectively serve as a way to experience public sector work without committing to a multi-decade career. He similarly desires federal workers to explore the private sector for a few years and then decide if they wish to rejoin the federal workforce.

“Perhaps I’m just traditional,” he said. “But I believe that individuals possessing diverse experiences across both the public and private sectors offers mutual benefits to both types of organizations.”

Reshaping the Federal Workforce

These recruitment efforts may signal a shift in approach from the first year of Trump’s second term, during which the federal government saw a reduction of 386,826 workers. This included approximately 17,000 from reductions in force and thousands more who resigned or retired, largely a consequence of DOGE’s efforts to cut government headcount to trim the federal budget. Thousands of these employees were also probationary, holding their positions for less than one year. 

While approximately 122,000 employees joined the federal workforce between January 2025 and January 2026, this represented a 55% decrease from the number of new hires in 2024, resulting in a net reduction of 264,000 employees in 2025.

Although DOGE was dissolved as a centralized entity in late 2025, federal workers informed that DOGE personnel remain active within individual agencies, and the widespread firings and resignations have disrupted daily workflow and, in some cases, burdened remaining employees with increased workloads.

Kupor explained that he views the concurrent hiring and firing as a strategic reprioritization aimed at filling workforce gaps rather than simply implementing cuts. This week, OPM launched the Early Career Talent Network, a recruitment pipeline for entry-level workers to join the federal payroll in roles such as finance, human resources, engineering, product management, or procurement.

Among Kupor’s concerns regarding the government workforce is its older demographic, with half of workers within 10 years of retirement age, he noted. Meanwhile, according to OPM, only 7% of the federal workforce consists of entry-level workers, compared to over 20% in the broader U.S. workforce.

“If no other actions are taken, we face a significant demographic challenge where a large number of people will likely either retire or certainly be retirement-eligible in the near term, without us adequately replenishing the pipeline of early-career individuals,” Kupor said.

Realities of Conflicts of Interest

The extensive connections between the Trump administration and the private sector have raised concerns about conflicts of interest, and Kupor stated he would not “dismiss” these risks. Rather, in some instances, it is a risk the administration is prepared to undertake.

“We have not excelled in government—which I hope we improve upon—at balancing potential risks with potential benefits,” he said. “In some cases, we tend to think, okay, if there is some degree of risk, we therefore disregard any potential upside. And while not always the case, I believe that in many instances, the significant upside potential of incorporating individuals with diverse backgrounds and experiences is, I think, really important.”

The administration has faced scrutiny over conflicts of interest. Public Citizen has identified 137 Trump appointees with prior private sector ties, including some in industries they have been tasked with regulating. The president’s own close ties with the private sector have prompted some experts to raise alarms. Last July, Trump signed the GENIUS Act, a bill (which stands for Guiding and Establishing National Innovation for U.S. Stablecoins) that established rules for stablecoins, a type of cryptocurrency pegged to the U.S. dollar. As of March 2025, $1.8 billion of Trump’s net worth was derived from crypto-related entities.

(Federal regulations prohibit government employees from participating in official decisions that would directly affect their personal financial interests, or the interests of their families or commercial partners.)

“It’s a really significant problem that the president has an indirect financial relationship with a stablecoin issuer,” Todd Phillips, a banking and administrative law professor at Georgia State University, told at the time. “That stablecoin issuer may approach the OCC seeking a license, and if the OCC denies it, the president has the authority to dismiss the comptroller.”

Kupor, for his part, stated that OPM would implement safeguards to mitigate conflicts of interest within the U.S. Tech Force. For example, OPM would not place a former private sector employee in a position to make procurement decisions.

“It’s worthwhile to at least consider these challenges and accept a certain level of risk, provided we believe we can manage it,” he said. “The potential benefits for the organization are substantial.”