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U.S. News
03 February 2025

Federal Employees Weigh Controversial Buyout Offers Amid Uncertainty

New program evokes concerns as employees navigate job security and financial stability options.

The federal government is stirring considerable reaction among its workforce as it unveils its Deferred Resignation Program, which allows federal employees to take buyouts amid uncertain job security. Announced by the Trump administration, the program offers all full-time federal employees—excluding military personnel, U.S. Postal Service staff, and roles relating to immigration enforcement or national security—the opportunity to resign by February 6, ensuring they will receive their full salary and benefits until September 30.

Quoting the Department of Government Efficiency, one directive mentions, "You can take the vacation you always wanted, or just watch movies and chill, whilst receiving your full government pay and benefits." This somewhat casual framing of the offer has drawn both interest and skepticism from the 2.3 million federal employees who have until early February to make their decisions.

Despite the appeal of such terms, significant concerns loom over the program. Many employees have expressed worry about their employment status and financial security, especially with the impending deadline. While the White House expects 5 to 10 percent of employees to accept the buyout—potentially affecting hundreds of thousands of workers—the offer raises difficult questions about the Trump-era workforce's future.

The announcement sent out to federal employees indicates, "At this time, we cannot give you full assurance of your position," according to the emails shared with employees. Such statements are unsettling for federal workers weighing the decision to remain with the government or take what may appear as the safer exit plan.

On top of determining whether to accept the buyout, employees have also been left uncertain about the program's scope. Earlier guidance from the Office of Personnel Management (OPM) failed to clearly outline who was eligible for early retirement alongside the deferred resignation program. OPM later clarified, stating, "Employees who are eligible for the deferred resignation offer and are at least age 50 with at least 20 years creditable Federal service... are eligible for VERA along with the deferred resignation offer," but this vague stipulation still encouraged skepticism among employees.

Further complicate matters, the possibility of reduced agency budgets after March 14 looms large, as Republican leaders signal intentions to cut spending following the expiration of many government funding authorities. The OPM guidance indicated, "Any government shutdown could potentially affect an employee’s pay regardless of whether he or she has accepted the deferred resignation offer," creating additional anxiety as employees grapple with the weight of their choices.

Adding to the controversy, some remarks from OPM suggested lower public sector productivity. "The way to greater American prosperity is encouraging people to move from lower productivity jobs... to higher productivity jobs," the OPM stated. This line has concluded to critiquing some federal employees, who already feel undermined by the perception of being less productive than their private sector counterparts.

The chaotic environment surrounding the decision has led to debates about the legality of these buyouts and their reliability as commitments. Many employees feel uneasy about taking the offers without clarity on what will happen when the time expires—especially with terms being precedent-setting for such extended administrative leave, which traditionally serves for short-term absences.

With experts offering guidance for those uncertain about taking the buyout, many have suggested evaluating different scenarios. Decision-making models have become popular for those wrestling with such life-altering choices. Each employee is advised to picture future scenarios where different choices lead to vastly-divergent outcomes: opting for the buyout versus retaining their position. Each path could lead to opposite states of happiness or distress.

Facing this tough choice, one can’t help but wonder how many federal employees will heed the call to leave by the early February deadline. Not only does this offer have the potential to reshape the federal workforce, but the motivations and futures of countless federal workers hang delicately in the balance; some are realizing they may need to seize the opportunity before the emotional and economic storm grows more severe.

Indeed, the resignation buyouts could be reshaping the workforce, but as uncertainty reigns, the true impact of this deferred resignation offer will take time to fully comprehend.