Begin typing your search...

Trump's Buyout Offer Could Slash U.S. Government Workforce by 15%

Donald Trump’s voluntary buyout plan offers federal workers up to 8 months of salary to reduce government workforce and save billions annually.

image for illustrative purpose

Trump Eyes Social Media Return, Meta Pays $25M in Settlement
X

29 Jan 2025 1:55 PM IST

In a significant move to reduce the size of the federal workforce, former President Donald Trump has unveiled a proposal for a voluntary buyout program aimed at cutting government employment in the United States. The plan, which was announced through a memo from the Office of Personnel Management (OPM), offers government employees the option to resign in exchange for a financial incentive.

The initiative, which impacts around 2 million federal workers, provides an offer of up to eight months of salary for those who voluntarily choose to leave their positions. The deadline for employees to make a decision on whether to accept the offer is set for February 6. This move is part of Trump’s broader strategy to improve the efficiency and adaptability of the government workforce.

The buyout comes at a time when many federal employees have transitioned to remote work arrangements following the COVID-19 pandemic. The Trump administration has recently emphasized the need for employees to return to in-person work, requiring federal workers to be present in the office five days a week. Those unwilling to comply with this shift have the option to take the buyout offer.

Experts estimate that approximately 10 to 15 percent of federal employees may opt to take the buyout, potentially resulting in significant reductions in government spending. If successful, the program could lead to savings of up to $100 billion annually in federal expenses.

While the proposal is seen as a cost-cutting measure, it has sparked discussions regarding its potential impact on public services. With the federal workforce comprising about 1.9 percent of the total U.S. workforce, and many employees possessing specialized skills, a significant reduction in government personnel could strain essential services. Agencies that rely on experienced workers, such as food inspection, water testing, and aviation safety, could face challenges in maintaining operations.

At the end of 2024, the U.S. government employed roughly 3 million individuals, according to data from the Pew Research Center. These employees typically remain in their positions for an average of 12 years, making the loss of even a small percentage of them potentially disruptive to federal governance.

Everett Kelly, president of the American Federation of Government Employees, has characterized the buyout as a voluntary program, suggesting that it should not be viewed as a forced measure. However, the proposal has raised concerns about its long-term effects on both the federal workforce and the broader economy.

International News Donald Trump 
Next Story
Share it