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    Home»Money»Trump’s Federal Worker Buyout, RTO Plan: What We Know, What We Don’t
    Money

    Trump’s Federal Worker Buyout, RTO Plan: What We Know, What We Don’t

    Press RoomBy Press RoomJanuary 29, 2025No Comments4 Mins Read
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    • The Trump administration is starting to roll out its plans to reduce the federal workforce.
    • They include a federal-worker buyout, a return-to-office mandate, and a hiring freeze.
    • Here’s what we know so far — and what’s still unknown — about the plans for federal workers.

    President Donald Trump is using multiple avenues to follow through on his plan to slash the federal workforce. But many questions remain about how it will work and what a government job will look like when he’s done.

    An email on Tuesday from the Office of Personnel Management gave a glimpse into the administration’s approach, offering a buyout for federal workers who voluntarily resign. While much is still unknown, Trump’s recent actions, including a hiring freeze and return-to-office order, are starting to paint a firmer picture.

    Detailed below is what we know so far about Trump’s plan to reduce the federal workforce — as well as what’s still up in the air.

    What we know

    On Tuesday night, OPM began sending emails to federal workers offering them a “deferred resignation,” under which employees can choose to leave their jobs before February 6. Employees who accept the offer will continue to receive full pay and benefits through September 30, the OPM letter said.

    The OPM followed up with a post on X on Wednesday directed toward employees who ultimately elect to take a buyout. It confirmed that those workers would no longer be required to work and that they would still receive full pay and benefits for that predetermined period.

    Elon Musk, who is tasked with leading Trump’s Department of Government Efficiency, which aims to slash spending, also confirmed the nature of the resignation in a Wednesday post on X.

    “Clarification of what can be done while receiving full government pay & benefits for 8 months: whatever you like, including obtaining a new job,” he wrote.

    Further, an FAQ posted by OPM elaborated on some of the resignation logistics. It said that employees will continue to accrue retirement benefits during their deferred resignation, but that a decision to retire would override future coverage under the buyout.

    No action is required for employees who don’t want to resign. The OPM has been clear about its decision deadline, but it said exceptions may be made for employees on leave between January 28 and February 6.

    All of these new developments are in addition to two previous executive orders signed by Trump: one establishing a hiring freeze on federal agencies, and another requiring government employees to return to the office full-time.

    The latter is widely seen as a move to boost attrition, as some percentage of the workforce would prefer to quit than return to the office. Agencies are in the process of implementing both of those orders.

    Related stories

    What we still don’t know

    While the OPM has laid out broad parameters for the federal buyouts, there are some decisions being left up to the discretion of individual agencies. Principal among them is the choice of who to include in the buyout offer. Agencies have been given the discretion to exclude specific workers or positions, but details around who exactly those exceptions involve are not readily available.

    There’s also a lack of clarity around the “performance culture” the remaining workforce will be expected to uphold, as laid out in the OPM’s original email to government employees. While the letter stressed “excellence at every level,” and said outperformers will be rewarded, few further specifics were provided about what actions or behaviors that might entail.

    One of the other pillars of change outlined by the OPM in their letter was focused on “enhanced standards of conduct.” The message said that employees who engage in “unlawful behavior or other misconduct” will be investigated and possibly disciplined or terminated. However, there is no further specificity around what would qualify as “misconduct.”

    As it pertains to Trump’s return-to-office order, some workers are awaiting further details. While most employees who live near a federal office have already been required to return to work in person, agencies are working to develop plans for remote workers who live far away from a worksite.

    OPM asked agencies to begin phasing back in remote workers who are more than 50 miles from a current agency office. It’s not yet clear how exactly that would work, and agencies are expected to provide plans to OPM no later than February 7.

    OPM also asked federal agencies to compile lists of employees they could easily fire, and it’s unclear what the administration will do with that information at this point.

    Are you a federal worker, or do you have a tip to share? Reach out to this reporter at asheffey@businessinsider.com or contact her securely on Signal at the username asheffey.97.

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