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Hybrid workingUSALatest NewsFlexible workingLeave

Federal employees offered 8 months’ pay to resign

by Rob Moss 29 Jan 2025
by Rob Moss 29 Jan 2025 Mark Schiefelbein/Associated Press/Alamy
Mark Schiefelbein/Associated Press/Alamy

Almost all federal employees have been given until 6 February to decide whether to resign, as president Donald Trump aims to reduce US government headcount and reform working practices.

The administration expects around 10% of federal staff – as many as 200,000 employees – to accept the offer of “deferred resignation” which will see them receive pay until 30 September, be exempt from return-to-office mandates and, aside from a commitment to ensure “a smooth transition” during their remaining time, employees will not typically be expected to work.

Senior Trump officials have suggested the move could save as much as $100bn (£80bn).

Trump signed an executive order on his first day in power (20 January) for federal staff to return to in-person work. It said: “Heads of all departments and agencies in the executive branch of government shall, as soon as practicable, take all necessary steps to terminate remote work arrangements and require employees to return to work in-person at their respective duty stations on a full-time basis, provided that the department and agency heads shall make exemptions they deem necessary.”

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Other directives issued by Trump last week included restored accountability for employees who have policy-making authority and senior executives, and a reformed federal hiring process to focus on merit.

Deferred resignation is available to all full-time federal employees except for people employed in the military, the US Postal Service, immigration enforcement and national security, and those in other positions “specifically excluded by their employing agency”.

In an email from the government’s HR agency, the US Office for Personnel Management (OPM), to some two million people last night, federal employees were told that the reformed federal workforce will be built around four pillars:

  • Returning to the office five days per week, although in future it expects locations to undergo consolidation and divestitures, potentially resulting in physical office relocations for a number of federal workers.
  • Performance culture will insist on “excellence at every level”. Standards will be updated to reward and promote those that exceed expectations and address in a fair and open way those who do not meet the high standards which the taxpayers “have a right to demand”.
  • More streamlined, flexible workforce: The majority of federal agencies are likely to be downsized through “restructurings, realignments, and reductions in force”. These actions are likely to include the use of furloughs and the reclassification to “at-will” status for a substantial number of federal employees.
  • Enhanced standards of conduct: The federal workforce should be comprised of employees who are reliable, loyal, trustworthy, and who strive for excellence in their daily work. Employees will be subject to enhanced standards of suitability and conduct as we move forward. “Employees who engage in unlawful behaviour or other misconduct will be prioritised for appropriate investigation and discipline, including termination.”

The “Fork in the Road” email continued: “If you choose to remain in your current position, we thank you for your renewed focus on serving the American people to the best of your abilities and look forward to working together as part of an improved federal workforce. 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 and will be afforded the protections in place for such positions.”

“If you choose not to continue in your current role in the federal workforce, we thank you for your service to your country and you will be provided with a dignified, fair departure from the federal government utilizing a deferred resignation program. This program begins effective January 28 and is available to all federal employees until February 6. If you resign under this program, you will retain all pay and benefits regardless of your daily workload and will be exempted from all applicable in-person work requirements until September 30, 2025 (or earlier if you choose to accelerate your resignation for any reason).”

Thank you for your service

The email concludes: “Whichever path you choose, we thank you for your service to The United States of America.”

Federal employees have until next Thursday to reply to email from their government email address with the word “resign” in the subject line.

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

In response to the employee “buyouts”, Everett Kelley, president of the American Federation of Government Employees union, said: “The number of civil servants hasn’t meaningfully changed since 1970, but there are more Americans than ever who rely on government services. Purging the federal government of dedicated career civil servants will have vast, unintended consequences that will cause chaos for the Americans who depend on a functioning federal government.

“This offer should not be viewed as voluntary. 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.”

A series of FAQs were published by the OPM, accompanying the email. One said: “Am I expected to work during the deferred resignation period?”

The answer reads: “No. Except in rare cases determined by your agency, you are not expected to work.”

Another question reads: “Why am I being offered deferred resignation?”

The OPM’s answer reads: “The federal workforce is expected to undergo significant near-term changes. As a result of these changes (or for other reasons), you may wish to depart the federal government on terms that provide you with sufficient time and economic security to plan for your future – and have a nice vacation.”

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Read the template deferred resignation letter for federal employees to use.

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Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

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