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Government Downsizing Through Voluntary Resignations

President Donald Trump is offering buyout packages to nearly all federal employees unwilling to return to the office. This initiative aims to reduce the size of the US government.

On Tuesday, his administration emailed millions of federal workers, giving them until February 6 to decide on participation in a “deferred resignation program.” Employees who agree to leave by that deadline will receive about eight months of salary as severance.

The administration expects up to 10% of federal employees—around 200,000 workers—to accept the offer. CBS News, the BBC’s US partner, reports that officials estimate the plan could save the government up to $100 billion (£80 billion).

To accept, employees were instructed to reply to the email with “resign” in the subject line. The package includes both salary and benefits through September 30. However, certain workers—such as postal employees, military personnel, immigration officials, and national security staff—were excluded from the offer.

The Office of Personnel Management (OPM), the federal government’s HR department, issued a follow-up email on Tuesday evening. It warned of potential future job cuts for those who choose to stay. The email stated, “We cannot fully assure you of your position’s security. However, if your role is eliminated, you will be treated with dignity.”

Political and Financial Implications

Trump previously announced that federal employees working remotely since the COVID-19 pandemic must return to in-person work five days a week. Speaking to CNN on Tuesday, White House Deputy Chief of Staff Stephen Miller claimed that the government’s two million workers lean “overwhelmingly left of center.” He emphasized that Trump sees gaining control of the government workforce as essential.

Trump has long vowed to reduce government spending and bureaucracy. He appointed Elon Musk and Vivek Ramaswamy to an advisory panel tasked with cutting regulations, expenditures, and federal headcounts. Ramaswamy later departed from the group, informally called the “Department of Government Efficiency” (Doge).

The email sent to federal employees mirrors one Musk issued in 2022 after acquiring Twitter (now X), in which he requested emailed confirmations from employees wishing to remain at the company.

The buyout offer followed a tumultuous day in Washington. Earlier, Trump issued a memo suspending federal grants, loans, and financial aid. However, a district judge temporarily blocked the order, originally set to take effect Tuesday afternoon, delaying it until the following Monday.

Before the judge’s decision, confusion spread about which programs would be affected. The White House worked to reassure the public that Social Security payments and Medicaid access would not be disrupted.

Top Democrats expressed “extreme alarm” over the funding pause in a letter to the White House. Meanwhile, on the same day, Trump signed an executive order restricting gender-affirming care for minors.

Titled “Protecting Children from Chemical and Surgical Mutilation,” the order seeks to prevent individuals under 19 from undergoing medical transition procedures. “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 states.

Legal experts expect challenges to the order, as its implementation remains unclear.