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U.S. President Donald Trump has introduced a major initiative to shrink the federal government by offering buyout packages to almost all federal employees who do not wish to return to office work. The move, which could result in substantial government downsizing, was announced via email to millions of federal workers on Tuesday.
Trump’s Buyout Offer and Deadline
The Trump administration’s email outlined a “deferred resignation program,” giving employees until February 6 to decide whether they want to participate. Those who opt in will receive approximately eight months of salary as a severance package. The White House expects about 10% of the federal workforce, or around 200,000 employees, to accept the offer.
Senior Trump officials told U.S. media that this initiative could save the government up to $100 billion (£80 billion), significantly reducing federal expenditures.
Employees who wish to accept the buyout were instructed to respond to the email with “resign” in the subject line. Under the offer’s terms, participating employees would receive both salary and benefits until September 30.
Certain federal employees, including postal workers, military personnel, immigration officers, and some national security staff, were excluded from the offer, as stated in the email.
Warnings of Future Layoffs
The Office of Personnel Management (OPM), the federal government’s HR agency, also cautioned that those who decline the buyout may still face job insecurity. The email stated, “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.”
This statement suggests that further downsizing measures could follow, potentially affecting employees who choose to stay.
Return-to-Office Mandate
The buyout initiative follows Trump’s earlier directive requiring all federal employees who had been working remotely since the COVID-19 pandemic to return to the office full-time.
Stephen Miller, White House Deputy Chief of Staff for Policy, defended the move in an interview with CNN on Tuesday, stating that the federal workforce was “overwhelmingly left of center” and that it was “essential” for Trump to “get control of government.”
During his presidential campaign, Trump frequently pledged to reduce the size of the government and cut federal spending. To achieve this, he appointed Elon Musk and Vivek Ramaswamy to lead an advisory panel focused on reducing regulations, spending, and government headcounts. Ramaswamy has since departed from the initiative, which had been dubbed the “Department of Government Efficiency” (Doge).
Observers have noted similarities between Trump’s buyout plan and the employee layoffs at Twitter, now X, after Elon Musk acquired the social media platform in late 2022. Musk had asked Twitter employees to email their intent to remain at the company, mirroring Trump’s email request for federal employees to submit their resignation.
Legal and Political Repercussions of Trump’s Buyout
The mass buyout offer was announced amid a turbulent day in Washington. On Tuesday, Trump issued a memo stating his intention to pause federal grants, loans, and other forms of financial assistance. However, a federal district judge temporarily suspended the order until at least Monday, leading to confusion over which programs would be affected.
The White House reassured the public that essential services such as Social Security payments and Medicaid would not be impacted. However, congressional Democrats strongly opposed the move. In a letter to the White House, top Democratic leaders expressed “extreme alarm” over the planned funding pause.
Trump’s Executive Order on Gender Care
In a separate action on Tuesday, Trump signed an executive order titled “Protecting Children from Chemical and Surgical Mutilation,” which aims to restrict gender-affirming healthcare for minors. The order states, “It is the policy of the United States that it will not fund, sponsor, promote, assist, or support the so-called ‘transition’ of a child from one sex to another.”
The order seeks to prevent individuals under 19 from undergoing medical gender transition procedures. However, its implementation remains unclear, and legal challenges are expected.
