President Donald Trump’s push to tighten federal spending is set to impact nearly 2 million federal employees, who will start receiving emails Tuesday offering them a “deferred resignation” buyout, according to media reports.
The resignation package includes approximately eight months of severance pay with benefits, a move that a senior administration official told NBC News could save the government around $100 billion. Federal workers who wish to accept the buyout can respond to a pre-drafted resignation letter with a single word: “resign.”
White House Press Secretary Karoline Leavitt defended the move, calling the offer “very generous” and emphasizing that taxpayers should not be paying for employees who refuse to work in government offices.
“American taxpayers pay for the salaries of federal government employees and therefore deserve employees working on their behalf who actually show up to work in our wonderful federal buildings, also paid for by taxpayers,” Leavitt stated.
“If they don’t want to work in the office and contribute to making America great again, then they are free to choose a different line of work, and the Trump Administration will provide a very generous payout of eight months.” The administration anticipates that between 5% and 10% of the federal workforce will voluntarily resign by the end of the buyout period on February 6, NBC News reported.
For those who choose to stay, the administration made it clear that job security is not guaranteed. “If you choose to remain in your current position, we thank you for your renewed focus on serving the American people to the best of your abilities and look forward to working together as part of an improved federal workforce,” reads the email employees will receive.
“At this time, 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 and will be afforded the protections in place for such positions.”
The plan has drawn comparisons to business magnate Elon Musk’s controversial restructuring of Twitter, now X, when he required employees to opt in to continue their employment following his takeover of the company.
It remains unclear whether Musk, who now leads the newly established Department of Government Efficiency (DOGE), played a role in the federal employee buyout program. However, his influence on cost-cutting measures in the corporate sector has set a precedent that appears to be reflected in Trump’s approach to trimming the federal workforce.
With a looming deadline for employees to decide their futures, Trump’s strategy signals a dramatic shift in government operations, reinforcing his administration’s hardline stance on federal spending and workforce restructuring. The policy is expected to face criticism from unions and federal employee advocacy groups, setting the stage for potential legal and political battles in the weeks ahead.