President Donald Trump has introduced a buyout program targeting most federal workers unwilling to return to in-office duties. This initiative, aimed at reducing the size of the U.S. government, offers employees eight months of salary as a severance package if they agree to resign by February 6.
Announced via email, the “deferred resignation program” is expected to attract up to 10% of federal employees, potentially saving the government up to $100 billion annually. Workers accepting the deal will receive pay and benefits until September 30.
Certain groups, such as postal workers, military personnel, and immigration officials, are excluded from the offer. Remaining employees were warned of potential downsizing in the future.
The move follows Trump’s mandate for remote federal employees to return to the office full-time and aligns with his broader campaign promise to cut federal spending and streamline government operations.
The mass buyout offer came at the end of an at-times chaotic day in Washington, following a memo Trump issued which said he would pause federal grants, loans and other assistance.
A district judge suspended the order – which was initially set to go into effect on Tuesday afternoon – until next Monday.
In the hours before that decision, there was widespread confusion over which federal programmes and organisations would be impacted. The White House repeatedly sought to assuage concerns that Social Security payments and Medicaid access could be disrupted.
In a letter to the White House, top Democrats expressed “extreme alarm” about the plan to pause funding.
Also on Tuesday, Trump signed an executive order aimed at restricting gender care for young people.
The order, titled ‘Protecting Children from Chemical and Surgical Mutilation’, says it will prevent those aged under 19 from making “life-altering” choices.
“It is the policy of the United States that it will not fund, sponsor, promote, assist, or support the so-called ‘transition’ of a child from one sex to another,” the order says.
It is unclear, however, how the order would be implemented and it is likely to be challenged in court.
