Trump’s New Strategy: Cost-Saving Resignation Plan for Federal Employees Unveiled

Person handing over a resignation letter.

Trump administration offers federal workers buyouts to resign, aiming to cut costs and boost efficiency.

Quick Takes

  • Trump administration introduces “deferred resignation” plan for federal workers
  • Employees can resign now but receive full pay and benefits through September
  • Goal is to reduce federal workforce by 5-10%, potentially saving $100 billion annually
  • Offer excludes military, postal, immigration, and national security personnel
  • February 6 deadline for employees to opt into the buyout program

Trump Administration’s Bold Move to Streamline Federal Workforce

The Trump administration has unveiled a bold initiative aimed at trimming the federal workforce and cutting costs. In a move that echoes private sector strategies, the administration is offering buyouts to nearly all federal employees, encouraging a return to in-person work and potentially reducing the government’s payroll significantly.

The plan, dubbed the “deferred resignation” program, allows federal workers to voluntarily resign now while continuing to receive their full pay and benefits through September 30, 2025. This generous offer comes with a catch: employees must decide by February 6 whether to opt into the program.

Efficiency and Productivity at the Forefront

The Trump administration’s focus on efficiency and productivity in government is evident in this new initiative. The plan emphasizes a return to in-person work, with most remote federal employees expected to return to the office five days a week. This shift aligns with the administration’s broader goals of maximizing operational effectiveness and service quality for the American public.

The administration has outlined four pillars for accountability in a government-wide email: return to in-person work, accountability for policy-making employees, accountability for senior executives, and a merit-based hiring process. These pillars underscore the commitment to reshaping the federal workforce and its operational structure.

Potential Savings and Workforce Reduction

The Trump administration anticipates that 5-10% of federal employees may accept the buyout offer, potentially leading to significant savings for taxpayers. Estimates suggest that this reduction could save up to $100 billion annually, a substantial sum that could be redirected to other priorities or used to reduce government spending.

“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,” stated White House press secretary Karoline Leavitt.

It’s important to note that this offer excludes certain critical sectors of the government workforce. Military personnel, U.S. Postal Service employees, immigration enforcement officers, national security positions, and other specific roles are not eligible for the buyout program. This exclusion ensures that essential services and national security functions remain fully staffed and operational.

Implementation and Reaction

The buyout offer was communicated to federal workers through a new email system set up by the Trump administration. The email, with the subject line “Fork in the Road,” included a draft resignation letter and instructions for employees to reply with “resign” if they wish to accept the offer. This approach mirrors strategies used in the private sector, notably by Elon Musk at Twitter (now X).

However, the initiative has not been without criticism. AFGE National President Everett Kelley has voiced concerns about the voluntary nature of the program and its potential impact on government services. Critics argue that such a significant reduction in the federal workforce could disrupt essential functions and services provided to the American public.

As the February 6 deadline approaches, federal employees face a significant decision. The Trump administration’s “deferred resignation” plan represents a pivotal moment in federal workforce management, with potential far-reaching implications for government operations and efficiency. The coming weeks will reveal the extent of its impact on the federal workforce and the government’s ability to serve the American people effectively.