Trump administration offers federal workers new details on buyout offers

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The Trump administration has sent federal workers an updated sample contract with new terms for accepting a deferred resignation, the next move in an effort to reduce the size of the federal workforce by the end of the fiscal year in September.

Federal workers who accept the administration’s resignation offer ahead of a deadline this week would work through Feb. 28 and be placed on administrative leave starting March 1, according to a copy of a contract the U.S. Office of Personnel Management (OPM) sent to federal agencies Monday.

Workers taking the deferred resignation deal would receive pay and benefits through the end of the fiscal year Sept. 30, according to a sample contract viewed by Newsweek.

“During the deferred resignation period, [AGENCY] shall continue to pay Employee’s current salary and Employee shall continue to retain and receive all benefits of Employee’s federal employment,” the sample form reads.

Elon Musk
Tesla CEO Elon Musk, Co-Chair of the newly announced Department of Government Efficiency (DOGE), arrives on Capitol Hill on December 05, 2024 in Washington, DC.

Anna Moneymaker/Getty Images

Federal workers who take the deferred resignation would forfeit pay and benefits if they resign before Sept. 30. Workers who agree to the terms can “accept non-federal employment” during the deferred resignation period, the contract reads.

The sample contract offered new details on the initial deferred resignation offer outlined in OPM’s Jan. 28 email to federal agencies. The email, which had the subject line “Fork in the road,” was part of President Donald Trump’s plan to shrink the size of the federal workforce and set off widespread confusion among government workers about their employment status.

Despite the updated sample contract it remains unclear if the deferred resignation offers are legally binding. The updated contract language also raised new questions, including whether workers can be required to perform any job duties while on administrative leave.

“Employee shall not be expected to work during the deferred resignation period except in rare circumstances as determined by [AGENCY],” the contract reads.

Federal employee unions have told workers to reject the resignation offers. Trump took office vowing to slash federal jobs and spending with the help of tech billionaire Elon Musk, who is running an administration initiative called the Department of Government Efficiency (DOGE).

The White House has defended the buyout offer and said some workers have already accepted the deal ahead of a Feb. 6 deadline.

“A significant number of federal workers have accepted the buyout offer,” White House deputy chief of staff for policy Stephen Miller told reporters last week. Miller did not provide a specific number, and it’s unclear exactly how many workers have agreed to the terms.

Axios reported on Tuesday, citing a senior administration official, that about 20,000 federal employees had accepted the buyout offer. Roughly 2.3 million people work for the federal government.

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