Federal agencies have begun issuing formal documents to government employees offering a “buyout” or exit package, as part of a plan to reduce the federal workforce, a strategy introduced under the Trump Federal Employee Buyout initiative.
Employees at the Department of Commerce were the first to get the “deferred resignation program” details, which essentially offers a way for them to leave voluntarily.
The contract, which employees would need to sign, waives certain rights, making it a legal process for exiting. The Department of Health and Human Services and the Department of Energy have also begun distributing these documents. In total, about 60 employees at the Department of Energy have been placed on administrative leave linked to diversity, equity, and inclusion issues.
Despite the formal contracts, some are questioning whether the administration can legally offer this downsizing option.
The deadline for signing up is February 6, with the exit process expected to conclude by March 31. Employees who sign up will still receive their pay and benefits through September 30, even though they won’t have to work.
For Your Information
The Trump administration’s federal employee buyout program officially began on January 28, 2025. This initiative offers federal employees the opportunity to voluntarily resign by February 6, 2025, in exchange for severance pay equivalent to approximately eight months’ salary. The program aims to significantly reduce the size of the federal workforce, which has been a key goal for Trump.
The announcement was communicated through an email sent to millions of federal workers, detailing the terms of the buyout and emphasizing that those who opt to leave will retain their salaries and benefits until September 30, 2025. This program is part of Trump’s broader strategy to reshape government operations and enforce a return to in-person work for federal employees.
The administration anticipates that between 5% and 10% of the federal workforce may take advantage of this buyout offer, potentially resulting in substantial savings for the government. However, this initiative has faced criticism, with some viewing it as a coercive measure rather than a genuine opportunity for employees. Concerns have also been raised regarding its legality and potential long-term effects on federal services and employee morale.
As the deadline approaches, the implications of this buyout program continue to generate significant discussion and scrutiny among lawmakers, union representatives, and federal employees alike.