Trump Administration Offers Federal Employees Buyouts Amid Push for Government Downsizing

The Trump administration is offering a controversial buyout program to federal employees as part of its plan to shrink the size of the U.S. government. In a message sent on Tuesday, the Office of Personnel Management (OPM) announced a "deferred resignation" scheme, offering federal workers a chance to quit their jobs in exchange for eight months' pay and benefits. Employees have until February 6th to decide whether to accept the offer.

With more than three million federal workers, the program is expected to impact around 10% of them, which could result in up to 200,000 resignations. The White House has emphasized that those who resign will retain full pay and benefits until September 30th, and they will not be required to work in person during that time (U.S. Office of Personnel Management, 2025).

The buyout applies to almost all full-time federal employees, excluding certain groups such as military personnel, U.S. Postal Service workers, and those in national security and immigration-related roles. The program aims to cut down on government staff and reduce remote working, as the Trump administration pushes for most employees to return to the office five days a week.

However, the plan has drawn criticism from labor unions, with the American Federation of Government Employees (AFGE) calling it a "purge" of federal workers. The AFGE warned that such mass resignations could lead to chaos in the government, leaving Americans without the services they rely on. The National Treasury Employees Union (NTEU) also urged its members not to take the buyout, claiming the offer is designed to intimidate employees into resigning.

Supporters of the buyout, including senior administration officials, argue that it is necessary to "reform" the government and push for higher standards. Officials pointed out that only 6% of federal employees currently work full-time in office, a situation deemed "unacceptable" by some within the administration.

As part of the broader effort to reduce government size and spending, the Trump administration has also been working on reforms to eliminate waste, including a freeze on federal grants and loans, which has sparked confusion and legal challenges. This freeze, along with the buyout program, is part of a larger effort to reshape the federal workforce and cut costs.

Despite the backlash, the administration remains committed to its goal of reducing government staff and enforcing stricter work standards. Critics, including Democratic Senator Tim Kaine, have questioned the legality of such mass buyouts, while others point to the growing tension between federal workers and the current administration.

The ongoing turmoil over these plans follows a tumultuous period for the Trump administration, which has also faced challenges in implementing other aspects of its agenda. Legal battles over the funding freeze and other controversial policies are expected to continue, but the buyout program remains a key part of the president’s push to reshape the federal workforce.

As the deadline for federal employees to make their decision approaches, many are left weighing the offer's financial appeal against the uncertain future of their positions within the government.

References:

U.S. Office of Personnel Management. (2025). Fork in the Road. [online] Available at: https://www.opm.gov/fork [Accessed 29 Jan. 2025].