Trump Administration Offers Buyouts to Federal Employees in Effort to Downsize Government

Initiative Aims to Reduce Federal Workforce by Offering Eight Months' Salary to Voluntary Resignees

In a significant move to reshape the federal workforce, the Trump administration has announced a "deferred resignation program" offering federal employees approximately eight months of salary to voluntarily resign by February 6. This initiative is part of a broader strategy to streamline government operations and reduce the size of the federal workforce.

The Office of Personnel Management communicated the offer to federal employees, indicating that those who opt into the program will remain on the payroll with reduced or eliminated duties until September 30, 2025. The administration anticipates that this move could lead to a reduction of up to 10% of federal employees, potentially saving around $100 billion.

This initiative aligns with President Trump's broader agenda to reform the federal bureaucracy, which includes directives for most federal employees to return to physical offices and the implementation of enhanced standards of suitability and conduct. The administration has also issued new orders to facilitate easier termination of federal employees, aiming to create a more performance-oriented culture within federal agencies.

The "deferred resignation program" exempts participants from in-person work requirements until September 30, providing flexibility for those who choose to resign. However, the administration warns that employees who decide to remain are not guaranteed long-term job security, as efforts to streamline the workforce continue.