Subscribe

Trump offers federal employees eight months' pay to quit

Up to 10% of employees are expected to accept the offer as part of a wide-ranging attempt by Donald Trump and Elon Musk to slash government costs.

Trump offers federal employees eight months' pay to quit

Donald Trump is pushing forward with plans to reduce the size of the US government by offering federal employees eight months' pay to resign. Employees have until February 6 to accept the offer, according to a memo from the Office of Personnel Management.

The government’s human resources agency also warned of future downsizing, less remote work, and stricter standards of conduct. With over three million federal employees, the impact of major job cuts is uncertain. This voluntary resignation program excludes positions related to immigration, national security, and U.S. Postal Service staff. NBC News reports that up to 10% of employees may take the offer.

A union representing federal workers has criticized the plan, calling it an attempt to purge employees not loyal to the Trump administration. Everett Kelley, president of the American Federation of Government Employees, claimed the goal is to create a toxic work environment that drives employees out. The National Treasury Employees Union, representing 150,000 federal workers, advised its members not to resign under pressure.

The resignation offer includes retaining all pay and benefits, and exemption from in-person work requirements until September 30. An email sent to federal employees featured the subject line “Fork in the road,” a phrase previously used by Elon Musk in a 2022 email to Twitter employees. Musk, overseeing a government cost-cutting initiative, urged federal workers to take action.

In other news, Trump's government-wide funding freeze, which affects grants and loans, has sparked confusion and legal challenges. The Office of Management and Budget directed federal agencies to temporarily halt spending that conflicts with the president’s agenda. Non-profit organizations have been unable to access federal funds for expenses like salaries and rent. A lawsuit from these groups led to a court ruling that temporarily blocked the funding freeze. Another court hearing is set for Monday to review the issue.

Releted News