Amid the very recent inauguration of Donald Trump, there has been a plethora of attempted policy changes. As he made clear in his campaign with Project 2025, he’s planned to make significant alterations to government, the economy and a broad range of human rights. One of the most recent changes that have caught the attention of the public is related to federal employee buyouts; while these are not a new occurrence, this time around it is a bit different. The immediacy of the offer from the White House has caused some panic and sparked discourse around the motivations of the buyout. Here is what we know about the unfolding situation.
Why Is the Federal Employee Buyout Happening?
An employee buyout is an agreement between an employer and employee to end an employment contract in exchange for payment. These gradual payments, or buyouts, serve as a much more manageable way to divest from an employer as opposed to being laid off. On the upside, not being let go suddenly is definitely preferable. Despite this, the circumstances of a buyout can be incredibly stressful. This is what federal employees are going through due to significant directives from Trump’s administration.
POTUS positions the federal employee buyout as a way to reform the federal work force. In the email sent out to employees on Jan. 28, the buyout was described as “deferred resignation.” As stated in the email, this buyout is basically a way to require workers to come into the office full time again for the first time since the COVID-19 pandemic; employees who disagree with, cannot, or won’t get back in the office can simply just bow out. This is a big deal given that even before the pandemic, many federal employees could work in a hybrid modality or at least could work from home one day a week.
But for some, it may be an ideal opportunity to get a guaranteed payout before other transitions and changes are made within the federal government under the new administration. The buyout is worth around eight months of both benefits and salary. So, this declaration at least has a relatively long-term payment incentive. Since the recent buyout is all due to Trump’s efforts to downsize the government, which he has been attempting since his first term, this is seemingly a tactic to push people out.
Who Does Deferred Resignation Apply To?
According to the Government Executive, the White House is offering all 2.3 million federal employees the buyout opportunity. There are exclusions and specifications to those offerings though, like how only full time employees are eligible. The exceptions to the buyout offer have been shared with employees. These include postal workers, immigration officials, members of the military and even some national security roles.
But technically, the buyout impacts everyone. As the email illustrates, people who take advantage of the program have to agree that, “I understand my employing agency will likely make adjustments in response to my resignation including moving, eliminating, consolidating, reassigning my position and tasks, reducing my official duties, and/or placing me on paid administrative leave until my resignation date.” Those who take up the offer from the buyout will be exempt from the in-office requirements until the official deferred resignation date, Sept. 30, 2025. Despite this exemption, things are pretty bleak on either side of the coin.
Employees who choose not to take advantage of the program do not have job security regardless of their loyalty. Continuing employees have to persist knowing their job is at risk during the downsizing. The buyout offer states, “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.”
Implications of the Federal Employee Buyout
The federal employee buyout has already shaken many since it will undoubtedly impact millions of families. Unfortunately, this is seemingly just the beginning of the President’s strategy to downsize the government. Down the line, workers may encounter even more unsettling directives from the administration. An example of ways the situation may escalate during his term is that people are simply laid off. The term that the federal government uses for this is a reduction in force (RIF). Reduction in force is comparable to the last resort in an attempt to downsize. This reduction is carried out by the HR teams across various agencies. They rank things like years of service, overall performance and even military service to decide who will be retained.
This is a “downsizing by reductions” or consolidation of positions technique. It may lead to the dissolution of agencies and offices. This can be devastating for workers who are not deemed a part of the “improved federal workforce.” Due to Trump’s past comments about the inefficiency of the government, it is not unrealistic to deduce that positions and perhaps whole agencies may be eliminated sooner than later.
