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White House Offers Financial Incentives for Federal Employees to Resign

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The Trump administration announced on Tuesday that it is offering financial incentives for up to 2 million full-time civilian federal employees to resign as part of a broader effort to downsize the U.S. government.

The initiative, called the “deferred resignation program,” allows employees to remain on the payroll through September 30 while potentially seeing their duties reduced or eliminated. According to an email sent to federal employees and reviewed by Reuters, those interested must respond from their government email accounts with the word “resign” by February 6.

The program applies to most civilian federal workers, excluding those in immigration, national security, and U.S. Postal Service positions. The White House aims to create a “more streamlined and flexible workforce” through voluntary resignations, layoffs, and restructuring, the email said.

Sweeping Workforce Overhaul

The move is part of President Donald Trump’s early efforts to reshape the federal government to align with his political priorities. While some agencies, including the military, are expected to grow, most are likely to see reductions.

Currently, the U.S. government employs approximately 2.3 million civilian workers (excluding the Postal Service). These employees oversee critical functions such as veterans’ healthcare, agricultural inspections, and financial management. However, the share of federal employees as a percentage of the total non-farm workforce has been declining for decades and now sits below 2%.

The administration’s memo warned employees that job security could not be guaranteed, stating, “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.” It also acknowledged that the planned reforms would be “significant.”

Skepticism and Legal Questions

The proposal has drawn sharp criticism. Democratic Senator Tim Kaine dismissed it as a “fake offer,” arguing that Trump lacks the authority to implement such a program and that employees may not receive the promised payouts.

It remains unclear how many workers will take the offer and what impact the resignations would have on government operations and costs. NBC News cited a senior administration official estimating that 5%–10% of the workforce could leave, potentially saving $100 billion—though Reuters was unable to verify this figure.

Billionaire Elon Musk, appointed by Trump to lead a government cost-cutting initiative, initially aimed to reduce $2 trillion in spending from the $6.8 trillion federal budget but has since scaled back expectations.

Concerns Over Firing and Reclassification

Many federal employees are unionized and enjoy strong job protections. However, the administration is exploring ways to bypass these safeguards. The memo indicates plans to furlough employees and reclassify a significant number to “at-will” status, making them easier to terminate without notice or justification. Federal buyout offers are generally capped at $25,000.

An unsigned email from the newly created address hr@opm.gov, titled “Fork in the Road,” raised further concerns. The subject line mirrors one Musk used in a 2022 email to Twitter employees. The National Treasury Employees Union, which represents about 150,000 federal workers, warned members that the email is “designed to entice or scare you into resigning” and urged them not to accept the offer.

In a follow-up message to federal agencies, the White House Office of Personnel Management clarified that employees who resign under the program should have their duties reassigned or eliminated and be placed on paid administrative leave until September 30. Participants can take other jobs and will continue accruing retirement benefits through that date. Agencies retain the ability to exempt specific positions from the offer.

Broader Government Restructuring Efforts

This initiative follows other aggressive moves by the Trump administration to reshape the federal workforce. Trump has issued directives to restructure government agencies, require employees to return to in-person work, and identify probationary employees who are easier to terminate. A federal hiring freeze remains in place, with exceptions for military, immigration enforcement, national security, and public safety roles.

Trump also signed an executive order making it easier to fire thousands of federal employees by reclassifying their job status. Critics argue these actions create a hostile work environment.

“Between the flurry of anti-worker executive orders and policies, it is clear that the Trump administration’s goal is to turn the federal government into a toxic environment where workers cannot stay even if they want to,” said Everett Kelley, president of the American Federation of Government Employees, urging employees to carefully consider their options before resigning.

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