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Federal Employees To Receive Separation Pay Worth 8 Months If They Agree to Quit Now

Federal employees are facing a critical decision right now. In an unprecedented move, the Trump administration announced a “deferred resignation” program to nearly all government workers. They offered buyouts to nearly all civilian federal workers if they agree to quit now. Those who accept by February 6 will receive eight months' worth of salary as severance, with employment officially ending on September 30. The administration expects around 200,000 employees, which is roughly 10% of the federal workforce. If this number accepts the offer, the government will save around $100 billion.
A Radical Workforce Reduction Strategy
The initiative is part of President Donald Trump’s broader effort to reduce government spending and reshape the federal workforce. The program excludes employees in immigration, national security-related positions, and the U.S. Postal Service. In an email sent to federal employees, the administration acknowledged that layoffs could follow for those who choose not to participate. “We cannot give you full assurance regarding the certainty of your position,” the email stated, adding that affected workers “will be treated with dignity.”
Elon Musk, who leads the Department of Government Efficiency (DOGE), was tapped to oversee the cost-cutting effort. Musk had originally aimed to cut $2 trillion in government spending but later revised the target to $1 trillion, saying that the latter is a more achievable goal. Meanwhile, the White House issued further directives designed to cut more spending. This includes a federal hiring freeze and a mandate to return employees to in-office work. It also shared plans to reclassify thousands of federal workers to at-will status, which makes it easier to terminate employment.
How Will This Affect Federal Services?
While the administration touts the buyouts as a necessary step to streamline government operations, critics warn of significant disruptions. The federal workforce oversees crucial functions such as veterans' healthcare, Social Security, and agricultural inspections. Reducing staff by 10% could slow down essential services and increase backlogs. The National Treasury Employees Union has advised members against resigning, calling the program an attempt to “purge” government agencies of experienced workers.
The legality of the buyouts is also being questioned. Democratic Senator Tim Kaine dismissed the program as a “fake offer,” warning that Trump lacks the authority to guarantee the promised severance payouts. Additionally, the American Federation of Government Employees criticized the initiative and stated that it creates a “toxic environment” aimed at forcing resignations.
Despite the controversy, some federal employees may find the deal appealing, especially those nearing retirement. Participants in the program can continue accruing retirement benefits until September 30 and are permitted to seek new employment while still receiving government pay.
Federal Employees: Deal or No Deal?
With the February 6 deadline looming, federal employees must quickly decide whether to take the buyout or risk future layoffs. The administration has warned that agencies will undergo restructuring, and non-participating employees could face furloughs or job reclassification. Meanwhile, agencies must report weekly updates on how many workers opt into the program.
The Trump administration’s efforts to shrink the government are far from over. Additional executive orders targeting workforce reductions and hiring freezes may be on the horizon. For now, the future remains uncertain for millions of federal employees.
Should federal employees take the buyout or risk staying on? Tell us what you think!

