Trump Proposes Financial Incentives for Federal Employees to Resign

Wednesday 29 January 2025 - 09:07

The Trump administration has introduced a plan offering financial incentives to two million full-time civilian federal employees to encourage voluntary resignation, aiming to significantly reduce the size of the U.S. government.

Under the "deferred resignation program," eligible employees would remain on the payroll until September 30 without being required to report to work. Some may see their responsibilities reduced or eliminated during this period. Employees have until February 6 to accept the offer by responding to a government-issued email with the word "resign." However, the program excludes workers in immigration, national security, and the U.S. Postal Service.

This initiative aligns with former President Donald Trump's broader efforts to restructure and downsize the federal workforce. The U.S. government employs approximately 2.3 million civilian workers, excluding postal employees, with many engaged in vital services such as veterans' healthcare, agricultural inspections, and financial oversight. The percentage of federal employees relative to the non-farm workforce has been in steady decline for decades.

According to the administration’s communication, the restructuring aims to create a "more streamlined and flexible workforce." While certain sectors, including the military, may expand, most federal agencies are expected to experience reductions through layoffs and restructuring. The administration also warned employees that job security could not be guaranteed.

Criticism of the proposal has emerged, with Democratic Senator Tim Kaine labeling the offer "deceptive," arguing that Trump lacks the authority to implement it and that promised payouts may not materialize. Meanwhile, a senior administration official estimated that 5% to 10% of federal employees could accept the offer, potentially saving $100 billion—though this figure remains unverified.

The administration has also signaled plans to reclassify many federal workers to "at-will" employment status, making it easier to terminate staff without notice. Employee unions have expressed strong opposition, urging members not to resign. Additionally, the administration has issued directives targeting employees on probationary status—those with less than two years of service—who are easier to dismiss.

The White House has not officially commented on the initiative, but critics argue it reflects a broader strategy to make federal employment less secure and appealing. Labor unions have cautioned employees against making rash decisions, emphasizing the uncertainty surrounding the program’s legality and potential consequences.