A Sweeping Offer to Federal Workers In an unprecedented move to shrink the size of the federal government, President Donald Trump’s administration has launched a buyout program offering voluntary resignation incentives to millions of federal workers. Through this “deferred resignation” program, employees who opt to leave their positions by February 6 will receive eight months’ worth of salary and benefits, a measure designed to reduce what the administration describes as “government bloat.”
According to a senior administration official who spoke to NBC News, the goal is to “make sure that all federal workers are on board with the new administration’s plan to have federal employees in office and adhering to higher standards.” The administration estimates that approximately 200,000 workers—about 10% of the total federal workforce—will take the offer, which it claims could save the government up to $100 billion.
Who Is Eligible? The buyout is being made available to nearly all full-time federal employees, with a few significant exclusions. Those working in the military, U.S. Postal Service, immigration enforcement, and national security are not eligible for the program. Additionally, some agencies may choose to exempt certain roles at their discretion. The email announcing the program warns, “We cannot give you full assurance regarding the certainty of your position or agency, but should your position be eliminated you will be treated with dignity.”
Ending Remote Work and Reshaping the Workforce One of the key drivers behind this initiative is the administration’s effort to eliminate pandemic-era remote work policies. On his first day back in office, Trump signed an executive order mandating that all executive-branch employees return to their physical offices five days per week. The administration argues that telework policies have been abused and that government workers should be physically present to ensure efficiency.
“We’re five years past COVID and just 6 percent of federal employees work full-time in office. That is unacceptable,” an official stated, citing a report from Sen. Joni Ernst, R-Iowa. White House press secretary Karoline Leavitt reinforced this sentiment, saying, “If they don’t want to work in the office and contribute to making America great again, then they are free to choose a different line of work, and the Trump Administration will provide a very generous payout of 8 months.”
The administration has also hinted at further workforce reductions beyond the voluntary resignations. The Office of Personnel Management (OPM) stated in its memo, “The reform of the federal workforce will be significant,” with potential restructurings, furloughs, and changes to civil service protections looming on the horizon.
Projected Savings and Workforce Reduction The Trump administration is framing the buyout program as a fiscally responsible measure that will yield substantial savings. According to officials, the government stands to save up to $100 billion through these voluntary departures and other upcoming downsizing efforts. However, details on how this number was calculated remain scarce, and critics have questioned the feasibility of these savings.
The administration has tasked billionaire Elon Musk and entrepreneur Vivek Ramaswamy, both vocal proponents of reducing government bureaucracy, with leading an advisory body focused on streamlining federal operations. While Ramaswamy has since stepped down from his role, the initiative remains a cornerstone of Trump’s governance strategy.
Criticism and Concerns The program has sparked intense backlash from federal employee unions and Democratic lawmakers, who see it as an attempt to dismantle the career civil service. The American Federation of Government Employees (AFGE) issued a scathing statement, warning that the move would “cause chaos for the Americans who depend on a functioning federal government.”
“Between the flurry of anti-worker executive orders and policies, it is clear that the Trump administration’s goal is to turn the federal government into a toxic environment where workers cannot stay even if they want to,” said AFGE President Everett Kelley.
Democratic Senator Tim Kaine, whose Virginia district includes thousands of federal workers, has also urged employees to resist the offer. “If you accept that offer and resign, he’ll stiff you just like he stiffed the contractors,” Kaine said on the Senate floor, referring to past allegations that Trump failed to pay business contractors. “He doesn’t have any authority to do this. Do not be fooled by this guy.”
Beyond concerns over financial security for departing employees, critics worry that the loss of institutional knowledge will be detrimental to federal operations. Many fear that mass resignations could severely disrupt services such as veteran healthcare, consumer protection enforcement, and air traffic control.
A Reshaped Federal Workforce? Beyond this immediate buyout program, Trump’s administration is laying the groundwork for deeper structural changes to the federal workforce. Executive orders signed in his first days back in office have targeted diversity, equity, and inclusion (DEI) programs, with a sweeping mandate to eliminate all DEI-related offices and initiatives across government agencies.
Additionally, the administration is revisiting a controversial policy from Trump’s first term—reclassifying large numbers of federal employees into a new category that removes many long-standing job protections. Known as “Schedule F” during his first administration, this policy was rescinded by President Joe Biden in 2021, but Trump has revived it under the new title “Schedule Career/Policy.”
The OPM memo explicitly states that agencies are being directed to identify employees on probationary status, or those with less than two years of service, as they are easier to dismiss. “Federal agency heads were asked to identify employees on probationary periods, or who have served less than two years. Such employees are easier to fire,” the memo reads.
Trump’s personnel office has also scrapped a 2024 Biden-era regulation designed to protect civil servants, stating that the new executive order “directly nullifies these regulations.” This move, coupled with the administration’s broader plan to remove job protections, has left many federal employees feeling uncertain about their future.
The Future of Government Work As the February 6 deadline looms, federal employees are being forced to weigh their options carefully. With the possibility of job cuts and reclassifications, some may view the buyout as a safer bet, while others are concerned that accepting the offer will leave them vulnerable.
Regardless of how many employees ultimately resign, it is clear that Trump is aggressively pursuing a radical transformation of the federal workforce. Whether this results in significant cost savings or creates widespread administrative dysfunction remains to be seen. What is certain is that for many federal employees, the clock is now ticking on a life-changing decision.
FAM Editor: This kind of thing always makes us nervous, since the people who take the buyouts are those who are good enough to find work elsewhere. The slugs who should be fired, will stick around. I would much rather see the bottom 10% get fired based on some object performance criteria. But this is still better than nothing, I guess.