The Trump administration’s federal buyout program reaches its deadline today, with more than 40,000 government employees opting to resign in exchange for eight months of pay and benefits. The buyouts, managed by the Office of Personnel Management (OPM), were offered to over two million federal workers, excluding military, postal, and national security personnel. The administration introduced the program as part of its effort to reduce the federal workforce and restructure government agencies.
Agencies affected by the departures include the Environmental Protection Agency, the Department of Education, and the Consumer Financial Protection Bureau. Some agencies have implemented hiring freezes, with reports indicating that further restructuring may take place following the departures. The administration had set a target of cutting between 5% and 10% of federal positions, though the number of accepted buyouts has fallen below that estimate.
Public sector unions have challenged the buyout program in court, arguing that the administration lacks the authority to provide severance pay beyond March without congressional approval. The American Federation of Government Employees (AFGE) and other unions have claimed that employees accepting the offer may not be guaranteed full compensation if Congress does not extend funding.
Critics of public unions argue that their opposition to the buyouts is driven by financial concerns rather than employee protections. Unlike private sector unions that negotiate with businesses, public unions use collective bargaining to demand more from taxpayers. Some argue that government employees serve at the discretion of voters and should not be able to organize in ways that pressure taxpayers into providing additional compensation.
In addition to the buyouts, the Trump administration has placed a freeze on hiring and is evaluating agency functions to determine where further workforce reductions may be necessary. The Department of Government Efficiency, led by Elon Musk, has been tasked with reviewing federal employment structures and identifying areas for potential cost savings.
With today’s deadline in place, agencies will process the final round of resignations, with reports suggesting that the total number of buyouts could increase slightly before the final count is confirmed. The legal challenges from public sector unions remain ongoing.
