The Donald Trump administration has introduced a voluntary buyout program for federal employees, aiming to streamline US government operations and reduce costs. In an email sent on Tuesday, federal workers were informed of a “deferred resignation” program, requiring them to decide by February 6 if they wanted to participate. Employees who opt in will receive about eight months’ salary as severance if they agree to leave their positions by September 2025, reported BBC.
Potential workforce reduction
According to a report by CBS News, the administration anticipates that up to 10 per cent of federal employees—approximately 200,000 out of over two million workers—may accept the offer. Senior officials estimate that this initiative could save the government up to $100 billion.
The email, sent by the US Office of Personnel Management (OPM), outlined broader plans to reform federal employment practices, including a return to five-day in-office workweeks—marking an end to remote work policies introduced during the Covid-19 pandemic.
The buyout program is open to all full-time federal employees, excluding specific groups such as postal workers, military personnel, immigration officials, and certain national security staff. Those interested were instructed to reply with the word “resign” in the subject line.
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Future job security in US uncertain
The message also hinted at potential future downsizing for employees who choose to stay, stating: “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.”
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The White House has described the severance offer as “very generous," while administration officials emphasise the importance of reshaping the federal workforce.
Reactions to the buyout plan
Critics have raised concerns about the impact of the buyout program on government services. The American Federation of Government Employees (AFGE), the largest federal workers’ union, has warned that such workforce reductions could lead to disruptions in essential services.
Stephen Miller, White House Deputy Chief of Staff for Policy, told CNN that the federal workforce is “overwhelmingly left of center," adding that it is crucial for the administration to “gain control of government."
Meanwhile, Democratic Senator Tim Kaine questioned the legality of the move, stating: “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.”
Broader govt restructuring efforts
Trump has long advocated for reducing the size of the federal government and cutting government spending. To support these efforts, he appointed Elon Musk and Vivek Ramaswamy to an advisory body focused on cutting regulations, spending, and headcount. However, Ramaswamy has since stepped down from the newly established Department of Government Efficiency (Doge).
Observers have compared this buyout initiative to a similar approach taken by Elon Musk at Twitter (now X) in 2022, when employees were asked to confirm whether they wanted to remain at the company following major restructuring efforts.
Legal and policy challenges
The buyout announcement came amid other policy developments, including a temporary pause on federal grants and loans ordered by the White House. However, a district judge suspended the order, which was initially set to take effect on Tuesday afternoon, delaying its implementation until the following Monday.
The uncertainty led to confusion over which federal programs would be affected, prompting reassurances from the administration that Social Security payments and Medicaid access would not be disrupted. Top Democratic lawmakers, however, have expressed “extreme alarm” over the funding freeze.
New executive order on gender care
In a separate policy move on Tuesday, Trump signed an executive order restricting gender-affirming care for minors. The order, titled “Protecting Children from Chemical and Surgical Mutilation," seeks to prevent individuals under the age of 19 from undergoing gender-affirming medical treatments.
The order states: “It is the policy of the United States that it will not fund, sponsor, promote, assist, or support the so-called ‘transition’ of a child from one sex to another.”
While the policy has been signed, it remains unclear how it will be implemented. Experts predict it is likely to face legal challenges.
(With agency inputs)