The Trump Administration’s “Deferred Resignation” Program: What You Need to Know
In January 2025, the Office of Personnel Management (OPM) rolled out a controversial program—framed as a “deferred resignation” or “buyout” initiative—in a memo titled “Fork in the Road.” The offer allowed up to 2.3 million federal civilian employees to resign by mid-February (initially by February 6, later extended to February 12) and continue receiving full pay and benefits—without work duties—through September 30, 2025
Objectives and Administration
The initiative was presented as part of an effort to improve government efficiency and encourage in-person attendance—reportedly, only 6% of Washington, D.C., staff were currently working on-site The GuardianGovernment Executive. The White House and OPM defended the program as a voluntary, cost-saving restructuring of the federal workforce.
Scope and Participation
Despite initial projections of roughly 10% participation, by early February about 2% (approximately 40,000 employees) had opted in WikipediaABC NewsGovernment Executive. However, by July 2025, participation vastly increased: an estimated 154,000 employees—around 6.7% of the civilian workforce—accepted the offer and remained on paid administrative leave through summer The Washington PostWikipediaReuters.
Legal Concerns and Challenges
The program triggered immediate legal opposition. Critics cited statutory concerns, including the legality of extended paid leave, lack of appropriations from Congress, and potential violations of the Anti-Deficiency Act and Administrative Procedure Act
Among other actions, multiple unions filed lawsuits, urging federal employees to not accept the offer and challenging the legality of the program. Unions described it as coercive rather than voluntary
A federal judge briefly blocked the February deadline pending legal review, temporarily extending the window to February 12, though the program ultimately proceeded after the court lifted the halt
Costs, Impact, and Controversy
By mid-2025, this mass buyout—far from low-cost—had become a contentious issue. Senate investigators estimated $21.7 billion spent, with $14.7 billion going to those who resigned under the program and $6.7 billion paying employees who remained on leave due to litigation or agency restructuring The Washington Post. Critics warned this approach weakened essential services and wasted taxpayer dollars, while proponents insisted it was necessary for long-term restructuring The Washington PostWikipediaGovernment Executive.
Long-Term Effects
The fallout extended beyond buyouts. Agencies like the Department of Energy and Defense Department pursued additional reductions and restructuring, resulting in large-scale layoffs and early retirements that raised serious concerns about national security and workforce capacity
