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Summarize
Trump offers million federal employees 8 months' pay to quit
Employees have until February 6 to accept the offer

Trump offers million federal employees 8 months' pay to quit

Jan 29, 2025
12:33 pm

What's the story

In a bid to drastically shrink the size of the US government, the Trump administration has offered a buyout offer to nearly two million federal employees. The program, called the "deferred resignation program," allows these workers to remain on payroll until September 30 without having to work in person. Employees have until February 6 to accept the offer by replying "resign" from their government account.

Offer details

Buyout offer excludes certain federal positions

However, the buyout offer isn't extended to all federal positions. It specifically excludes those involved in immigration, national security roles, and employees of the US Postal Service. This move is in line with President Donald Trump's efforts to reshape the federal government according to his political priorities. While some agencies may expand under this new direction, most are expected to downsize through restructuring and layoffs.

Vision and criticism

Administration's vision and criticism of the buyout offer

An email sent to federal employees said the Trump administration envisions a "more streamlined and flexible" workforce post this initiative. "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 said. Democratic Senator Tim Kaine has criticized the proposal, labeling it a "fake offer" and questioning both Trump's authority to make such an offer as well as the certainty of the payout.

Impact assessment

Unclear impact on government costs and service levels

It remains unclear how this buyout offer would affect government costs or service levels. A senior administration official estimated potential savings of $100 billion if 5%-10% of workers accept the offer, though Reuters could not independently verify the figure. Elon Musk, who is overseeing cost-cutting efforts for the government, initially sought $2 trillion in spending cuts but now anticipates a smaller reduction.