Trump Offers Federal Employees Who Voluntarily Resign Eight Months’ Pay in Buyout Plan
President Donald Trump has introduced a buyout program for federal employees who voluntarily resign, aiming to reduce government size. In an email sent to millions of workers, they were given until February 6 to opt for a deferred resignation program, offering eight months of salary as severance.
The administration anticipates that about 10% of the federal workforce—roughly 200,000 employees—will accept the offer. Officials estimate this could save the government up to $100 billion. However, certain employees, such as military personnel and postal workers, are excluded.
The message, issued by the Office of Personnel Management, also hinted at potential downsizing risks for those who stay. Workers willing to accept the deal were instructed to reply to the email with “resign” in the subject line. The offer covers both salary and benefits until September 30.
Trump’s administration has emphasized reducing federal spending and government size. As part of this effort, he assigned Elon Musk and Vivek Ramaswamy to oversee regulatory and budget cuts. This move mirrors Musk’s previous restructuring at Twitter, where employees were given a choice to stay or leave under similar terms.
Democrats have criticized the decision, warning of potential disruptions to federal programs. Meanwhile, a district judge has temporarily blocked Trump’s separate directive to pause federal grants and loans. Despite these legal challenges, the administration remains focused on reshaping government operations.
The federal employees who voluntarily resign will receive compensation, but those remaining face uncertainty. This initiative aligns with Trump’s broader agenda of cost-cutting and restructuring within the U.S. government.
