Trump offers federal workers cash incentives to resign in massive government restructuring

President Donald Trump is offering financial incentives to roughly two million civilian federal employees to resign as part of a sweeping plan to shrink the U.S. government. 

The unprecedented “deferred resignation program” allows workers to stay on the payroll until September 30 but without in-person work requirements, while their duties may be reduced or eliminated.  

Eligible employees have until February 6 to reply to a government email with the word “resign” to participate. 

The program excludes immigration, national security, and U.S. Postal Service workers. 

The move aligns with Trump’s campaign promises to cut and reshape the federal government.  

Approximately 2.3 million civilian employees work for the U.S. government, excluding postal staff. 

Many oversee veterans healthcare, agriculture inspections, and financial operations. 

Federal employment as a share of the total workforce is below 2%. 

The administration’s email claims the plan aims to create a “more streamlined and flexible workforce,” though most agencies face downsizing through layoffs or restructurings.  

“We cannot give you full assurance regarding the certainty of your position,” the email stated, adding that eliminated roles would be handled “with dignity.” 

Critics, including Democratic Senator Tim Kaine, slammed the offer as a “fake” tactic, arguing Trump lacks the authority to guarantee the payouts.  

The National Treasury Employees Union, representing 150,000 workers, warned the email seeks to “entice or scare” resignations. 

The American Federation of Government Employees accused the administration of fostering a “toxic environment” to drive staff out.  

The program’s impact remains unclear. 

An unnamed official told NBC News it could get 5% to 10% of workers to quit, saving around $100 billion. 

Billionaire Elon Musk, advising on cost-cutting, initially targeted $2 trillion in reductions from the $6.8 trillion federal budget but now expects smaller cuts.

Federal employees who resign under the plan may take other jobs while accruing retirement benefits until September. 

Agencies can exempt certain roles, but the administration is also easing firing rules by reclassifying jobs to “at will” status, allowing terminations without notice.  

Trump has frozen federal hiring, excluding military and public safety roles, and prioritized ousting probationary workers. 

A recent executive order simplifies firing processes for thousands of federal workers.