Trump Offers Millions in Pay for Federal Workers to Resign

By Global Leaders Insights Team | Jan 29, 2025

President Donald Trump has offered buyout packages to nearly all federal workers who wish to avoid returning to the office, a significant step aimed at reducing the size of the US government.

In an email sent to millions of employees on Tuesday, his administration informed workers they must decide by February 6 whether they wish to participate in a "deferred resignation program."

Those who agree to leave by that date will receive approximately eight months' salary as a severance package.

The Trump administration anticipates that up to 10% of employees around 200,000 of the more than two million federal workers will accept the offer, according to CBS News, a BBC US partner.

Senior Trump officials said US media that the buyouts could save the government as much as $100 billion.

The workers, who want to accept the offer are told to reply to the email with the subject headline "resign." The offer entails pay and benefits for workers until September 30.

The email stated that certain employees were excluded from the offer, including postal workers, military personnel, immigration officials, and some national security employees.

The message from the Office of Personnel Management, the government's HR agency, also cautioned that future downsizing could affect those who choose to remain.

"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," it reads.

Following earlier public statements by Donald Trump that some federal employees will be required to return to a five-day-week job in the offices, the staff there received an e-mail. End.

In remarks to CNN Tuesday, White House Deputy Chief of Staff for Policy Stephen Miller said that two million workers working for the federal government were "overwhelmingly left-leaning" and that it was "crucial" that Trump "take control of the government."

Trump had promised to reduce the size of the government and cut federal spending throughout his campaign.

He appointed Elon Musk and Vivek Ramaswamy to head an advisory body to cut regulations, spending, and the number of employees in the federal government. Ramaswamy has since departed from the "Department of Government Efficiency" (Doge).

However, the email sent on Tuesday is similar to one Musk sent to Twitter (now X) employees in late 2022 after acquiring the social media platform, asking them to email their response if they wished to stay with the company.

The mass buyout offer came at the end of a turbulent day in Washington, following a memo Trump issued announcing a pause on federal grants, loans, and other assistance.

A district judge temporarily blocked the order, which was originally set to take effect on Tuesday afternoon, until next Monday.

In the hours leading up to that decision, there was widespread confusion over which federal programs and agencies would be affected. The White House repeatedly worked to reassure the public that Social Security payments and Medicaid access would not be disrupted.

Top Democrats expressed "extreme alarm" about the plan to halt funding in a letter to the White House.

However, it remains unclear how the order will be enforced, and it is expected to face legal challenges.