Trump Offers Federal Employees Eight Months' Pay to Resign Amid Government Restructuring

The White House expects 200,000 employees to accept severance deals as part of a broader federal downsizing plan.

Trump Offers Federal Employees Eight Months' Pay to Resign Amid Government Restructuring

President Donald Trump has introduced a voluntary buyout program for federal employees, aiming to reduce government size and spending. The plan, announced via an official email on Tuesday, allows workers to resign in exchange for a severance package equivalent to eight months' salary. Employees must decide by February 6 if they wish to participate in the "deferred resignation" initiative.

Aiming for Workforce Reduction

The Trump administration anticipates that around 10% of the federal workforce—approximately 200,000 employees—will accept the offer. If successful, this initiative could save the government up to $100 billion, according to CBS News.

[caption id="attachment_881" align="aligncenter" width="443"] White House aides reportedly expect between 5% and 10% of government employees to take the deal.[/caption]

The Office of Personnel Management (OPM) emphasized that the offer excludes postal workers, military personnel, immigration officers, and some national security staff. It also outlined additional reforms, such as requiring most federal employees to work on-site five days a week, signaling an end to COVID-era remote work policies.

Future Job Uncertainty

Employees opting for the buyout were instructed to respond to the email with "resign" in the subject line. The severance deal ensures pay and benefits until September 30. However, the message also warned of possible job eliminations for those who remain. "We cannot give you full assurance regarding the certainty of your position or agency," the message stated, adding that any layoffs would be handled with "dignity."

Political Reactions and Controversy

Critics argue that the move is a politically motivated effort to reshape the federal workforce. White House Deputy Chief of Staff for Policy Stephen Miller told CNN that federal employees tend to lean "overwhelmingly left of center," making it essential for Trump to exert greater control over government operations.

The American Federation of Government Employees (AFGE) union condemned the proposal, warning of "unintended consequences that will cause chaos for Americans who depend on a functioning federal government." Democratic Senator Tim Kaine also questioned the legality of the buyout program, cautioning employees, "If you accept that offer and resign, he'll stiff you just like he stiffed contractors. He doesn't have any authority to do this."

A Broader Strategy to Cut Government Spending

Trump has consistently advocated for downsizing the government and reducing federal expenditures. To support these goals, he appointed Elon Musk and Vivek Ramaswamy to lead an advisory board focused on slashing regulations, spending, and headcount. While Ramaswamy has since departed to run for governor of Ohio, the restructuring plan continues.

Observers have noted similarities between this federal employee buyout and Musk's restructuring of Twitter (now X) in late 2022, when employees were asked to confirm via email whether they wished to stay with the company.

Confusion Over Federal Grant Pauses

The buyout offer came amid broader administrative actions, including Trump's directive to temporarily halt federal grants, loans, and assistance. However, a district judge quickly suspended the order until the following Monday. The uncertainty led to widespread confusion regarding which federal programs would be impacted, prompting the White House to reassure the public that Social Security and Medicaid benefits would remain intact.

New Executive Order on Gender-Related Medical Treatments

In another major policy shift, Trump signed an executive order on Tuesday restricting gender-related medical treatments for individuals under 19. Titled "Protecting Children from Chemical and Surgical Mutilation," the order seeks to prevent government funding and support for gender transition procedures. However, legal experts anticipate challenges in court over its implementation.

Conclusion

The Trump administration's federal employee buyout initiative is part of a larger effort to reshape the U.S. government. While supporters view it as a cost-saving measure, critics see it as a political purge with potential long-term consequences. With strong reactions from lawmakers, unions, and federal employees, this policy will likely face significant scrutiny and debate in the coming months.