The Trump administration has rolled out a new ‘deferred resignation’ program aimed at reshaping the federal workforce by offering employees the option to resign while still receiving full pay and benefits through September 30, 2025. This move is part of broader efforts to reduce the size of the federal government. Here’s what federal employees need to know about this offer.
What Is the Deferred Resignation Program?
On January 28, 2025, the Office of Personnel Management (OPM) emailed roughly 2 million federal workers, outlining the details of the deferred resignation plan. Those who accept the offer must submit their resignation by February 6, 2025, and in return:
- They will continue to receive full salary and benefits until September 30, 2025.
- They will not be required to report to work in person.
- Their roles may be reassigned, reduced, or placed on paid administrative leave before their final resignation date.
The policy allows employees to resign earlier but does not permit extending the resignation date. If a worker qualifies for early or full retirement before September 30, they can choose to retire instead.
Who Is Eligible for This Offer?
While the majority of federal employees can apply, certain groups are excluded, including:
- Military personnel
- U.S. Postal Service workers
- Employees in immigration enforcement and national security roles
- Specific roles exempted by agency heads
What If Employees Choose Not to Resign?
Employees who decline the offer will not face an immediate penalty. However, the administration has hinted at upcoming downsizing efforts, including:
- Furloughs
- Reclassification of jobs to at-will status (making it easier to terminate employees)
- Elimination of certain positions
While the OPM has assured employees that any layoffs will be handled with dignity and in compliance with federal protections, the administration has not provided job security guarantees.
Why Is the Trump Administration Doing This?
President Donald Trump has long pushed for a smaller federal government, viewing the civil service as inefficient and in need of reform. This deferred resignation offer aligns with his campaign pledge to reduce bureaucracy and cut federal spending. The administration believes that if a significant number of employees accept the deal, it could save costs and make government operations more streamlined.
How Has the Offer Been Received?
The program has sparked criticism from lawmakers and federal employee unions:
- Senator Tim Kaine (D-VA) has questioned its legality, stating that the government cannot pay employees who are not working.
- The National Treasury Employees Union (NTEU) has advised federal workers not to resign hastily, warning that this could be a tactic to induce fear-driven resignations.
- The American Federation of Government Employees (AFGE) condemned the offer, stating that it could lead to chaos in government services and discourage long-term careers in public service.
What Should Federal Workers Consider?
Employees should carefully weigh their options before accepting the resignation offer. While it provides financial stability until September 30, 2025, it also means permanently leaving federal employment. Those considering the offer should:
- Consult their agency’s HR department
- Speak with legal advisors or unions
- Assess their retirement eligibility and long-term career plans
Final Deadline and Next Steps
Employees must decide by February 6, 2025, whether to accept the offer. Those who choose to resign should follow OPM’s instructions and keep records of their resignation documentation.
This policy represents a significant turning point for federal employees, with long-term implications for the government workforce. Careful consideration and professional advice are crucial before making a decision.