Trump offers $2m payouts for federal workers to quit
The Trump administration has proposed offering financial incentives to approximately 2 million full-time federal employees to voluntarily resign.

File Source: YouTube
The Trump administration has proposed offering financial incentives to approximately 2 million full-time federal employees to voluntarily resign. The “deferred resignation program” allows workers to remain on the payroll through September 30, 2025, without performing their duties, potentially having them reassigned or their roles eliminated in the meantime.
An email sent to federal employees outlined the offer, with the administration setting a deadline of February 6 for workers to decide whether to accept the proposal. Those interested were instructed to reply with the word “resign.” The offer applies to most civilian employees, excluding those in national security, immigration-related positions, and the U.S. Postal Service.
This unprecedented move is part of President Trump’s broader strategy to reshape the federal workforce, aligning it with his political priorities. With approximately 2.3 million civilian workers in the U.S. government, the aim is to reduce the federal workforce significantly, creating a more streamlined and flexible government. According to the email, the administration expects federal employees to be restructured, with layoffs and restructuring occurring across various agencies.
The email also noted that workers could not be assured of job security moving forward: “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.” The proposed changes, the email added, would be “significant.”
Democratic Senator Tim Kaine criticized the offer, calling it a “fake offer,” suggesting that the Trump administration lacked the authority to offer such payouts, and expressing doubts that workers would receive the promised financial incentives. While it is uncertain how many employees will accept, a senior administration official speculated that between 5-10% of federal workers could take the offer, potentially leading to savings of $100 billion.
The move follows a series of Trump administration actions aimed at streamlining the government, including efforts to restructure federal agencies and reduce spending. Elon Musk, appointed by Trump to oversee the government cost-cutting initiative, had initially proposed slashing $2 trillion from the federal budget but later indicated that a smaller amount would likely be cut.
In response to the offer, unions representing federal workers voiced strong opposition. The National Treasury Employees Union, representing around 150,000 workers, warned that the email was designed to either entice or pressure employees into resigning, urging them not to act hastily. The union emphasized that federal employees enjoy significant employment protections and should carefully consider the potential consequences of leaving their positions.
The move is expected to have significant implications for government service levels, especially in critical areas like veterans’ healthcare, agriculture, and more. Unions and workers have voiced concern that the Trump administration’s reforms could destabilize federal employment, leading to a “toxic environment” for government workers.