January 30, 2025 10:45 pm

Trump offers millions of federal workers eight months pay to resign

Getty Images Image shows Donald Trump
Getty Images
The email from the Trump administration says federal workers who take the buyout will receive pay until September

US President Donald Trump has offered buyout packages to almost all federal employees, a major move designed to shrink and reform the US government.

In an email sent on Tuesday, his administration told workers they had to decide by 6 February whether they wanted to be part of a “deferred resignation” programme.

If they agreed by that date to quit in September, the message said, they would receive about eight months’ worth of salary as a severance package.

The Trump administration expects up to 10% of employees to accept the offer – which equates to about 200,000 of the more than two million people who work for the federal government, according to the BBC’s US partner CBS News.

Senior Trump officials told US media that the buyouts could save the government up to $100bn (£80bn).

The message from the US Office of Personnel Management (OPM), the government’s HR agency, highlighted planned reforms to the government, including a requirement that most employees work in their offices five days a week.

Since returning to the White House last week, Trump has already declared the end of Covid-era home working practices.

The OPM said the offer was available to “all full-time federal employees” – excluding certain staff such as postal workers, members of the military, immigration officials, and some national security teams.

Workers wishing to take the deal were asked to reply to the email with the word “resign” in the subject line. The offer includes both pay and benefits for workers until 30 September, and has been described as “very generous” by the White House.

The message also warned of future downsizing that could impact those who chose to stay. “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 read.

Stephen Miller, the White House deputy chief of staff for policy, told CNN that the government’s workers were “overwhelmingly left of centre”, and that it was “essential” for Trump to “get control of government”.

The move has been condemned. In a statement to US media, the head of the American Federation of Government Employees (AFGE) union warned that this “purging” process would have “vast, unintended consequences that will cause chaos for the Americans who depend on a functioning federal government”.

Democratic Senator Tim Kaine was among those questioning Trump’s power to make such deals. “If you accept that offer and resign, he’ll stiff you just like he stiffed contractors,” he said. “He doesn’t have any authority to do this. Do not be fooled by this guy.”

The returning US president repeatedly pledged to cut the size of the government and slash federal spending while on the campaign trail.

He tasked Elon Musk and Vivek Ramaswamy with leading an advisory body focused on cutting regulations, spending, and headcounts within the federal government. Ramaswamy has since left this new Department of Government Efficiency (Doge).

But the email on Tuesday bore resemblance to one sent to employees of Twitter, now X, in late 2022 after Musk bought the social media platform. He asked for an emailed response if they wanted to remain at the company.

The mass buyout offer came at the end of an at-times chaotic day in Washington, following a memo Trump issued which said he would pause federal grants, loans and other assistance.

A district judge suspended the order – which was initially set to go into effect on Tuesday afternoon – until next Monday.

In the hours before that decision, there was widespread confusion over which federal programmes and organisations would be impacted. The White House repeatedly sought to assuage concerns that Social Security payments and Medicaid access could be disrupted.

In a letter to the White House, top Democrats expressed “extreme alarm” about the plan to pause funding.

Also on Tuesday, Trump signed an executive order aimed at restricting gender care for young people.

The order, titled Protecting Children from Chemical and Surgical Mutilation, says it would prevent those aged under 19 from making “life-altering” choices.

“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 said.

It is unclear, however, how the order would be implemented and it is likely to be challenged in court.

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