Why is Trump proposing an 8-month severance package for federal employees who resign?

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Hassan Khan

Why is Trump proposing an 8-month severance package for federal employees who resign?

The Trump administration introduced a “deferred resignation program” offering buyouts to nearly 2 million civilian full-time federal workers.

This unprecedented initiative allows employees to exit their positions by next week, aiming to streamline operations and reduce costs. According to an email sent to federal employees and seen by Reuters, the program permits them to remain on the payroll until September 30, but without needing to fulfill their duties in person, and some responsibilities may be reduced or eliminated.

Employees interested in the offer are instructed to reply with the word “resign” by February 6. The offer excludes workers in immigration, national security, and the U.S. Postal Service.

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This move is part of President Donald Trump’s broader strategy to overhaul the federal government, which he has been working to shrink and reshape since taking office. The goal is to create a more flexible and streamlined workforce, with some agencies potentially reducing staff through restructuring and layoffs, while others, such as the military, may see an increase in personnel.

Federal employees have expressed concern about the offer, with unions advising against hasty resignations. The National Treasury Employees Union, which represents 150,000 federal workers, urged members to resist the temptation, calling the offer a potential tactic to force employees out.

The email clarified that the position or agency of employees who participate in the program may not be guaranteed. It also assured employees that those who resign will be treated with dignity.

While the number of employees who will accept the offer remains unclear, some analysts predict up to 10% of the federal workforce may resign, potentially saving the government $100 billion. These figures have not been independently verified.

Elon Musk, who was appointed by Trump to oversee government spending reductions, initially aimed to cut the federal budget by $2 trillion, though later revised the goal to a more modest reduction.

The program has sparked mixed reactions among federal employees and unions, with concerns about potential mass layoffs and instability. Some workers are worried about being placed on paid administrative leave without any guarantees about their job security.

This initiative follows several other measures from the Trump administration, including a hiring freeze for most agencies and efforts to reclassify certain workers to “at-will” status, which would make it easier to terminate them.

As employees weigh their options, critics warn that the program could create a toxic work environment, leaving many uncertain about their future in the federal workforce.

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