Federal Employees Face Deadline for Controversial Buyout Offer

Federal civilian employees have a Thursday deadline to accept the Trump administration's offer to resign with pay through September. However, the proposal has created mass confusion about its legality, particularly regarding whether the White House has the authority to bypass Congress in managing paychecks for workers who choose to quit.

Over 40,000 workers have reportedly taken the offer, with the number continuing to grow, according to an unnamed source familiar with the situation. This figure represents roughly 2% of those who were offered the deal — a significant job reduction by any standard, but below the White House's goal of cutting between 5% and 10% of the federal workforce through buyouts.

Most civilian staff are eligible for the buyouts, including military personnel, U.S. Postal Service employees, immigration enforcement and national security workers. Agency heads can also determine exemptions within their departments.

Guidance posted on the Office of Personnel Management (OPM) website states that buyout offers do not guarantee employment. However, sample contracts sent to some federal employees indicate they must agree to work through February 28 and will enter paid administrative leave by March 1. The draft contract sent to Environmental Protection Agency employees states that the pay guarantee through September 30 is "subject to the availability of appropriations" determined by Congress, which must approve a new budget before the current one expires on March 14.

Trump appointed billionaire Elon Musk to lead his Department of Government Efficiency, initiating significant cuts to government agencies, which includes the potential shutdown of the U.S. Agency for International Development and discontinuing operations at the Consumer Financial Protection Bureau. The email sent on January 28 offering buyouts to federal staff was titled "Fork in the Road," mirroring a similar offer Musk made to Twitter employees after acquiring the company in 2022.

If the Trump administration meets its target of reducing staff by 5% to 10%, it would result in over 100,000 employees leaving the federal workforce, marking the largest layoffs in U.S. history. The current record is held by IBM, which eliminated 60,000 jobs in 1993.

Critics have raised legal concerns. The American Federation of Government Employees and other unions representing over 800,000 government workers filed a federal lawsuit seeking to temporarily halt the directive. The union cautioned its members that the existing government budget is only valid until March 14, making it impossible for the government to guarantee pay beyond that date. Employment lawyers and some Democrats have also questioned the legality of the order without congressional approval.

OPM spokesperson McLaurine Pinover accused opponents of the offer of "spreading misinformation and using workers as political pawns," asserting that the proposal "was thoroughly vetted and intentionally designed to support employees through restructuring."

This initiative is part of Trump's broader strategy to significantly decrease the size of the federal government, including a hiring freeze, barring remote work, and completely eliminating certain agencies like the Department of Education. Employees at the U.S. Agency for International Development and the Consumer Financial Protection Bureau have been instructed to halt operations while the Trump administration evaluates whether their work aligns with executive orders. The administration has also terminated inspectors general and Justice Department staff involved in prosecutions against Trump. Moreover, Trump placed all diversity, equity, and inclusion employees on paid leave and instructed each agency to cut its DEI programs.