The Trump administration has announced a new initiative offering financial incentives to approximately 2 million civilian full-time federal employees to voluntarily resign, as part of its plans to significantly reduce the size of the U.S. government.
The “deferred resignation program” allows federal workers to remain on the payroll through September 30, but without having to work in person, and with the possibility of having their duties reduced or eliminated. According to an internal email, employees have until February 6 to decide whether to participate. Those interested are instructed to reply to the email with the word “resign.” The offer is open to civilian employees, excluding those working in immigration, national security, or the U.S. Postal Service.
This unprecedented move comes as President Donald Trump has used his early days in office to reshape the federal government according to his political priorities. The U.S. federal workforce includes around 2.3 million civilian employees, with many working in various sectors such as veterans’ healthcare, agriculture inspections, and financial management.
Despite the federal workforce representing under 2% of the non-farm workforce, its size has been on the decline for decades.
A U.S. judge temporarily blocked part of the Trump administration’s broader directive to halt federal loans, grants, and other financial aid on Tuesday.
The administration stated that it expects the program to lead to a “more streamlined and flexible workforce.” While military and certain agencies may see staffing increases, most agencies will likely downsize through restructuring and layoffs. The email warned that federal employees could not be guaranteed job security, emphasizing that positions might be eliminated, but those affected would be treated with dignity.
Democratic Senator Tim Kaine criticized the proposal as a “fake offer,” arguing that Trump lacked the authority to extend such an offer and that employees may not receive the promised payouts.
It remains unclear how many federal employees will accept the offer and what impact the resignations may have on government operations or costs. A senior administration official suggested that 5%-10% of the federal workforce could quit, potentially saving $100 billion, although that figure remains unverified.
Elon Musk, appointed by Trump to oversee a government cost-cutting initiative, had initially set a goal to reduce federal spending by $2 trillion, though he later revised this estimate downward.
Unions Express Concern
Many federal employees are represented by unions and have significant protections. The memo indicated that the government plans to use furloughs and reclassify many employees to “at-will” status, which would make it easier for employers to reduce staff without prior notice. Federal buyouts are typically capped at $25,000.
The email, sent from a newly created address (hr@opm.gov), was titled “Fork in the Road,” echoing a similar subject line used by Musk in a 2022 email to Twitter employees. The White House did not respond to a request for comment.
The National Treasury Employees Union, which represents around 150,000 federal workers, cautioned its members not to fall for the offer, urging them not to resign. “The email is designed to entice or scare you into resigning,” the union said.
In another communication to federal agencies, the White House Office of Personnel Management provided more details, stating that employees who accept the offer would likely have their duties reassigned or eliminated, with paid administrative leave until the end of the resignation period. Participants would continue to accrue retirement benefits until September 30, and agencies could exempt specific positions from the offer.
Since taking office, Trump has issued directives to restructure the federal government, urging federal employees to return to work in person. He also imposed a hiring freeze for most federal jobs, excluding positions in the military, immigration enforcement, national security, and public safety.
Trump has also signed an executive order making it easier to fire federal workers by reclassifying their job status.
American Federation of Government Employees President Everett Kelley criticized the administration’s policies, accusing it of creating a hostile work environment for federal workers. He urged employees not to make rash decisions and to consider the long-term consequences of participating in the resignation program.
