Home Money & Business Business Key details on Trump’s buyout plan for federal workers

Key details on Trump’s buyout plan for federal workers

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Key details on Trump’s buyout plan for federal workers

The administration led by President Donald Trump is introducing a buyout plan aimed at swiftly decreasing the number of federal workers. Employees have a limited time to make their decision, with all responses due by February 6.

This buyout is available to all full-time federal staff, excluding military members, postal service workers, and those involved in immigration and national security roles. Accepting the buyout would provide eligible employees with a severance roughly equivalent to eight months of their salary. An announcement regarding the offer was dispatched to over 2 million federal employees on Tuesday, according to Katie Miller, a member of a special advisory board focused on government efficiency, which is led by Elon Musk and has the goal of downsizing government operations.

The proposal includes specific details for employees who choose to accept. In addition to their salary, these workers will retain their benefits during the buyout period and will be exempt from in-person work obligations until September 30, which coincides with the administration’s push for a return to office settings. The emailed instructions for acceptance require employees to simply reply with the word “Resign” in their response.

For those who opt to remain in their positions, a full-time return to the office would be expected, in line with the administration’s efforts to phase out remote work arrangements established during the COVID-19 pandemic. The communication emphasizes President Trump’s commitment to maintaining high standards across the government, indicating that many federal agencies may face staff reductions. Additionally, employees will be held to new, more stringent standards regarding suitability and conduct as the government moves forward.

Workers who accept the buyout can still pursue other jobs within the government in the future. According to recent data, the federal workforce exceeded 3 million employees as of November, which accounts for approximately 1.9% of the total civilian labor force in the U.S. When factoring out postal service employees and active duty military personnel, the civilian workforce stands at about 2.4 million.

Since the year 2000, the number of federal employees, excluding postal workers and active military, has been steadily rising, but it has generally aligned with the growth of the overall population, based on Pew Research analysis.

Federal employees typically hold their positions for nearly 12 years on average, as reported by Pew Research, with the largest group—about 19%—having between five and ten years of service. Approximately 15% have been employed for ten to fourteen years, followed by about 14% in the fifteen to nineteen year bracket. Longer tenures are less common, with nearly 9% of employees holding their jobs for 20 to 24 years, around 4% for 25 to 29 years, and just over 3% for 30 to 34 years or more than 35 years.

Employment concentration reveals that nearly 20% of federal workers are located in Washington D.C., Maryland, and Virginia. Among the states, California has the highest number of federal workers at around 147,500, though this represents less than 1% of the state’s nonfarmer workforce. Texas has approximately 130,000 federal employees, again less than 1% of its nonfarmer job market, while Florida has about 94,000 federal workers.

Responses from federal employees to the buyout offer have been mixed, having only recently received the communication on Tuesday. The head of the American Federation of Government Employees, Everett Kelley, criticized the offer, suggesting that it serves to pressure dedicated workers considered unfaithful to the new administration.

Kelley warned that the removal of experienced federal employees could lead to significant, unanticipated disruptions for American citizens reliant on an effective federal government. He pointed out the administration’s anti-worker practices, asserting that there’s an evident intention to create a workplace environment within the federal government that drives staff away, even against their will.