Trump offering federal workers buyouts in effort to shrink government

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00

The Trump administration announced Tuesday that it is offering buyouts to all federal employees who opt to leave their jobs by next week—an unprecedented move to shrink the U.S. government at breakneck speed.

A memo from the Office of Personnel Management, the government’s human resources agency, also said it would begin subjecting all federal employees to “enhanced standards of suitability and conduct” and ominously warned of future downsizing. The email sent to millions of employees said those who leave their posts voluntarily will receive about eight months of salary, but they have to choose to do so by Feb. 6.

President Donald Trump has built a political career around promising to disrupt Washington, and vowed that his second administration would go far further in shaking up traditional political norms than his first did. Still, the repercussions of so many government workers being invited to leave their jobs were difficult to calculate.

Katie Miller, who serves on an advisory board to the Department of Government Efficiency, a special Trump administration department headed by Tesla CEO Elon Musk and tasked with shrinking the size of government, posted on X, “This email is being sent to more than TWO MILLION federal employees.”

The federal government employed more than 3 million people as of November last year, which accounted for nearly 1.9% of the nation’s entire civilian workforce, according to the Pew Research Center. The average tenure for a federal employee is nearly 12 years, according to a Pew analysis of data from OPM.

Even a fraction of the workforce accepting buyouts could send shockwaves through the economy and trigger widespread disruptions throughout society as a whole, triggering wide-ranging—and as yet unknowable—implications for the delivery, timeliness and effectiveness of federal services across the nation.

Untold numbers of front-line health workers in the Veterans Affairs Department, officials who process loans for homebuyers or small businesses, and contractors who help procure the next generation of military weaponry could all head for the exits at once. It could also mean losing experienced food inspectors and scientists who test the water supply — while disrupting everything from air travel and consumer product protections.

In response, American Federation of Government Employees union President Everett Kelley said it should not be viewed as voluntary buyouts, but pressuring workers not considered loyal to the new administration to vacate their jobs.

“Purging the federal government of dedicated career federal employees will have vast, unintended consequences that will cause chaos for the Americans who depend on a functioning federal government,” Kelley said in a statement. “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.”

In its emailed memo detailing its plan, OPM lists four directives that it says Trump is mandating for the federal workforce going forward—including that most workers return to their offices full-time.

“The substantial majority of federal employees who have been working remotely since Covid will be required to return to their physical offices five days a week,” it reads. That echoes Trump, who said of federal employees over the weekend: “You have to go to your office and work. Otherwise you’re not going to have a job.”

The memo also says Trump “will insist on excellence at every level,” and while some parts of the government’s workforce may increase under his administration, “The majority of federal agencies are likely to be downsized.”

Finally, it says, 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,” the memo reads.

The emailed message includes a “deferred resignation letter” for federal employees to begin leaving their posts.

“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,” it says.

The email even includes instructions on how to accept, stating: “If you wish to resign: Select ‘Reply’ to this email. You must reply from your government account.” It adds: “Type the word ‘Resign’ into the body of this email and hit ‘send.’”

Meanwhile, OPM has released guidance for an executive order Trump signed on the first day of his second term known as “Schedule Career/Policy.” It replaces Schedule F, an order Trump signed late in his first term that sought to reclassify thousands of federal employees and make them political appointees without the same job security protections.

President Joe Biden rescinded Trump’s Schedule F order almost immediately upon taking office in 2021, and under his administration, OPM issued a new rule last year designed to make it more difficult to fire many federal employees.

That move was seen as a safeguard against using a new Schedule F order to help carry out the key goals of Project 2025, a sweeping plan by a conservative Washington think tank to dismiss large swaths of the federal workforce in favor of more conservative alternatives while also cutting back on the overall size of government.

But that hasn’t stopped the Trump administration from swiftly moving to gut the federal workforce and leave employees with little recourse to protest firings or reassignments.

Trump’s OPM on Monday set deadlines for agencies to begin to recommend workers for reclassification. Agency heads are being instructed to establish a contact person no later than Wednesday and begin to submit interim personnel recommendations within 90 days.

“Agencies are encouraged to submit recommendations on a rolling basis before this date,” Charles Ezell, the acting director of OPM, said in a memo.

Perhaps more stunning, the Trump personnel office simply did away with the Biden administration’s 2024 regulation to better protect federal workers. Monday’s memo said Trump’s new executive order used the president’s authority “to directly nullify these regulations.”

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

5 thoughts on “Trump offering federal workers buyouts in effort to shrink government

    1. You are assuming they will hire as many as leave under the program. How many backfills did Musk hire back at Twitter after his cuts? And that was a private company with allegedly far stricter oversight than Federal Government employees – the reason Musk knew there was so much overstaffing was all the online video’s posted by Twitter employees extolling all the perks and leisurely activities they were enjoying instead of actually working. Some Federal workers haven’t been in an office for years. And there are many who, even now, are required to show up only 2x/month… Care to wager how closely that is managed? When the SecDef goes out for surgery without informing the proper people and isn’t missed for several days, and when the Transportation Secretary can quietly take off a couple months for parental leave and only later it comes out, you know you have a problem with your workforce.

    2. I assume nothing. Heck, I don’t assume that the government would pay the employees who take this “deal”.

      This has nothing to do with draining a swamp. It’s has everything to do with installing a bunch of loyalists who, instead of loyalty to the United States, are loyal to the billionaires who installed them there. The equivalent of what billionaires have done with the judiciary.

      Meanwhile, keep being animated and fired up about abortion or transgendered rights … just the way the rich want it. You’re playing checkers, they’re playing chess.

  1. as with any mass reduction through retirement benefits, the concern is who takes the offer. More likely to be the really competent people who can readily move to a private sector job. More likely those who are not as capable will stay as federal employees. So, as with Musk and Twitter, you lose the best, and the company tanks. Only this time it isn’t some unconsequential social media play toy; its the federal government. Our nation will get along fine without the likes of Twitter; less so without a competent government work force.

Big business news. Teeny tiny price. $1/week Subscribe Now

Big business news. Teeny tiny price. $1/week Subscribe Now

Big business news. Teeny tiny price. $1/week Subscribe Now

Big business news. Teeny tiny price. $1/week Subscribe Now

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Your go-to for Indy business news.

Try us out for

$1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In