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If Trump Can’t Fire Them Then He’ll Pay Them to Quit; Offers Buyouts to All 2 Million Federal Workers

If Trump Can’t Fire Them Then He’ll Pay Them to Quit; Offers Buyouts to All 2 Million Federal Workers

by Tyler Durden
January 29, 2025
in News
Reading Time: 2 mins read

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  • Update (1750ET): According to CNBC, the buyout offer is for all 2 million federal workers. One senior administration official told the outlet that they expect 5-10% of the federal workforce to quit, which could lead to roughly $100 billion in savings.

(ZeroHedge)—In December, then-President-elect Donald Trump warned federal employees working from home that they would have to return to the office, or “they’re going to be dismissed.”

Now, according to Axios, the Trump administration will send out a memo Tuesday afternoon offering to pay federal workers who don’t want to return to the office, in what would amount to an 8-month severance through Sept. 30, a White House official tells the outlet.

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“The government-wide email being sent today is to make sure that all federal workers are on board with the new administration’s plan to have federal employees in office and adhering to higher standards. We’re five years past COVID and just 6 percent of federal employees work full-time in office. That is unacceptable,” said the anonymous senior administration official.

More via Axios:

It’s not clear how many workers would be eligible for this offer, or how it would be paid for.

  • According to guidance posted on OPMs website, in order to be eligible for severance pay workers must have completed at least “12 months of continuous service,” as well as meet other requirements.
  • Political appointees aren’t eligible for severance, per the website.

Many federal workers are already feeling scared about the administration’s crackdown on DEI, its return-to-office policy and the effort to reclassify civil servants.

  • That unease could increase take-up on this new offer.

Earlier on Tuesday, White House Press Secretary Karoline Leavitt said that the president has the authority to fire federal employees.

  • While that is true about at-will political appointees, federal workers have more protections.
  • Leavitt was defending Trump’s firings of at least a dozen agency inspectors general.

During the pandemic, approximately 2.3 million federal employees shifted away from traditional office spaces. This shift was not just a temporary adjustment, but a transformational move that many hoped would persist post-pandemic due to its perceived benefits in work-life balance and reduced operational costs.

The Biden administration, acknowledging these benefits, continued to support telework, facilitating the reduction of government-owned real estate and integrating flexible work arrangements into the fabric of federal employment. However, with Trump’s election, a quick pivot is on the horizon.

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Unsurprisingly, Trump’s call for a return to office has been met with resistance from federal employees and unions. Approximately 56 percent of the civil service is covered under collective bargaining agreements that include telework provisions, while a full 10% of federal jobs are now designated as fully “remote,” according to the Washington Post.


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Tags: Donald TrumpEconomyLedeTop StoryZero Hedge

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