Trump’s Bold ‘Buyout’ Plan To Shrink The Federal Workforce—Here’s Everything You Need To Know

Since the inauguration of his second term, President Donald Trump has instituted a blitz of executive orders and new policies impacting federal workers. This week, the Trump administration launched an unprecedented "deferred resignation" program for federal employees.

This sweeping buyout program aims to rapidly reduce the size of the federal government, offering employees compensation as an incentive to leave their posts, according to a memo from the United States Office of Personnel Management on Tuesday.

What Does The Federal Buyout Entail?

This initiative allows eligible workers to voluntarily resign from their positions by February 6, 2025, while continuing to receive their full salary and benefits until September 30, 2025.

The offer extends to the majority of the 2.3 million federal workforce, with notable exceptions including military personnel, U.S. Postal Service employees and those in immigration enforcement, national security roles or other agency-excluded positions.

"If you choose to remain in your current position, we thank you for your renewed focus on serving the American people to the best of your abilities and look forward to working together as part of an improved federal workforce," the proposal by OPM, the independent federal agency responsible for managing and overseeing human resources policies, practices and operations across the entire U.S. government, read.

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However, the memo acknowledged that the agency could not provide absolute certainty or “full assurance” about the employees’ continued employment or the stability of their specific organizational positions.

Should they choose to step down from their post, the communication provided recipients with a pre-drafted resignation letter for their review. Employees interested in leaving their positions could either examine the template or simply respond with the single word "resign" to confirm their intention to step down from their role.

The administration estimates that around 5% to 10% of federal employees may accept the buyout, potentially saving U.S. taxpayers up to $100 billion annually. However, this policy has sparked considerable controversy and debate over its implications.

Should Federal Workers Take It Or Leave It?

In a Frequently Asked Questions page on the agency’s website, OPM wrote why government workers may want to accept the buyout: “The federal workforce is expected to undergo significant near-term changes. As a result of these changes (or for other reasons), you may wish to depart the federal government on terms that provide you with sufficient time and economic security to plan for your future—and have a nice vacation.”

However, federal labor representatives and legal professionals are advising government workers to reject Trump's voluntary resignation proposal.

Max Alonzo, the national secretary-treasurer of the National Federation of Federal Employees, warned that the terms are unprecedented and potentially legally questionable, stating, "Absolutely do not resign. There is nothing that says that the day that you resign, that they can’t just let you go. They don't have to pay you—there's nothing that says they have to pay you till September 30," ABC News reported.

According to Alonzo, the offer is a deliberate attempt to dismantle the federal workforce and break down the “pillars of democracy."

The initial memo lacked clarity on whether employees who resign will continue to work between now and September 30 and be required to return in-office. A representative for OPM confirmed to NPR on Tuesday “that the expectation was that employees would be put on paid administrative leave soon after they replied to the memo.”

Is This A Page Out Of Elon Musk’s Playbook?

On his first day back in office, Trump issued an executive order directing the Office of Management and Budget director to collaborate with the Department of Government Efficiency and OPM to develop a strategy for downsizing the federal workforce.

The email sent this week to government employees bears the subject line "A Fork in the Road," mirroring a similar message tech billionaire and head of DOGE Elon Musk sent to Twitter (now X) staff after taking control of the platform, asking them to commit to his "extremely hardcore" vision or leave. This parallel extends beyond the subject line, as Musk has prominently displayed an artwork he commissioned with the same title on his X account.

On Wednesday morning, Musk praised the federal employee buyout offer as a "fair & generous deal," emphasizing that the eight-month severance package represents the maximum compensation possible under current legislative constraints.