Trump 2nd term live updates: Trump defends tariffs, declines comment on Ukraine aid

The IRS is preparing to cut as much as half of its staff as part of the Trump administration’s latest round of cuts to the federal workforce, multiple sources told ABC News.

The agency, which has roughly 100,000 employees, has not finalized its plans, which will be submitted as part of the Treasury Department “reduction in force” plan to the Trump administration later this month.

It’s unclear how or when the next round of layoffs will take place at the IRS amid the tax season. The agency has continued to lay off workers but has said it will not remove staffers who directly process tax returns this spring.

-ABC News' Benjamin Siegel, Olivia Rubin and Will Steakin

President Donald Trump's counselor to the president, Alina Habba, questioned the capabilities of some veterans affected by the federal government layoffs, saying they may not be "fit to have a job at this moment."

She offered limited sympathy to those who have lost their jobs amidst the cuts while speaking on the White House's North Lawn on Tuesday.

"That's something the president has always cared about -- anybody in blue, anybody that serves this country. But at the same time, we have taxpayer dollars, we have a fiscal responsibility to use taxpayer dollars to pay people that actually work," Habba said.

"That doesn't mean that we forget our veterans by any means," she continued. "We are going to care for them in the right way, but perhaps they're not fit to have a job at this moment or not willing to come to work. And we can't, you know, I wouldn't take money from you and pay somebody and say, 'Sorry, you know, they're not going to come to work.' It's just not acceptable."

-ABC News' Kelsey Walsh

The Trump administration has listed hundreds of federal properties across nearly every state for possible sale in a new phase of President Donald Trump's campaign to shrink the federal government, its workforce and footprint in Washington, D.C.

The list posted on the website of the General Services Administration includes some of Washington's iconic and most centrally located federal buildings, including many in the "Monumental Core" of the city around the Washington Mall -- from the Department of Agriculture and the Labor Department to the Justice Department, FBI Headquarters and Old Post Office.

-ABC News' Benjamin Siegel, Kelsey Walsh and Cherisse Halsall

Rep. Thomas Massie, R-Ky., said he is a no vote on any continuing resolution despite President Donald Trump and top GOP leaders endorsing a “clean” stopgap measure to fund the government until the end of September.

Rep. Tony Gonzales, R-Texas, also said he will vote against a continuing resolution.

Speaker Mike Johnson, R-La., can only afford to lose one Republican if all members are voting and present and will almost certainly need to rely on Democratic votes to avert a government shutdown.

The deadline to fund the government is March 14.

-ABC News' Lauren Peller