Trump Administration Offers Financial Incentives for Federal Workers to Resign

Under the "deferred resignation program," federal employees would remain on the payroll until Sept. 30 but may not be required to work in person and could have their duties reduced or eliminated, according to an email sent to federal employees and reviewed by Reuters.

Employees have until Feb. 6 to accept the offer by replying to the email with the word "resign" from a government account. The program excludes employees in immigration and national security-related positions, as well as US Postal Service workers.

The initiative comes as Republican President Donald Trump seeks to reshape the federal government to align with his policy priorities, continuing a broader effort to downsize and restructure agencies.

The US civilian federal workforce, excluding the Postal Service, totals about 2.3 million employees. While security-related agencies make up a significant portion of this workforce, hundreds of thousands work across various roles, including veterans' healthcare, agricultural inspections, and financial oversight. The proportion of federal employees relative to the overall non-farm workforce has been declining for decades and now stands below 2%.

In the email, the administration stated that the goal is to create a "more streamlined and flexible workforce." While some agencies, including the military, may expand their staff, most are expected to undergo downsizing through restructuring and layoffs. The message cautioned employees that job security could not be guaranteed.

"At this time, 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," the email read. "The reform of the federal workforce will be significant."

Democratic Senator Tim Kaine criticized the proposal, calling it a "fake offer" and questioning the administration's authority to implement it, warning that employees might not receive the promised financial benefits.

The potential impact on government costs and services remains unclear. NBC News cited a senior administration official estimating that 5% to 10% of the workforce could resign, potentially saving $100 billion.

Billionaire Elon Musk, whom Trump appointed to lead a government cost-cutting initiative, initially aimed to reduce federal spending by $2 trillion from the $6.8 trillion budget but has since signaled that actual cuts would likely be smaller.

Many federal employees are represented by unions and enjoy strong job protections. However, the administration's plan involves using furloughs and reclassifying a substantial number of employees as "at-will," making it easier to terminate them without prior notice. Federal buyout offers are generally capped at $25,000.

An unsigned memo from a newly created Trump administration email account, hr@opm.gov, bore the subject line "Fork in the road"—a phrase Musk previously used in a 2022 email to Twitter employees.

The White House did not immediately respond to a request for comment.

The National Treasury Employees Union, which represents approximately 150,000 federal workers, urged employees to ignore the resignation email, warning that it was "designed to entice or scare you into resigning."

A separate White House Office of Personnel Management email provided additional details, instructing agencies to reassign or eliminate the duties of participating employees and place them on paid administrative leave through the end of the resignation period. Employees could take another job while retaining retirement benefits through Sept. 30. Agencies can exempt certain positions from the offer.

Trump has issued multiple directives aimed at restructuring the federal government and compelling employees to return to physical offices. Agency heads were asked to identify employees on probationary status or those with fewer than two years of service—categories that are easier to dismiss. Additionally, the president implemented a federal hiring freeze, exempting positions in the military, immigration enforcement, national security, and public safety.

Trump also signed an executive order making it easier to fire thousands of federal employees by reclassifying their job status.

"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 Everett Kelley, president of the American Federation of Government Employees, urging workers not to make hasty decisions.