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Federal Employees Offered Deferred Resignation: A Path to Pay and Benefits

4/1/2025
Federal agencies are reviving deferred resignation programs, allowing employees to leave with pay. With deadlines approaching, many are faced with tough choices amid workforce reductions. Find out more about the options available.
Federal Employees Offered Deferred Resignation: A Path to Pay and Benefits
Federal agencies are offering deferred resignation programs to employees, allowing voluntary exits with pay and benefits. Decisions must be made soon!

Federal Employees Offered Deferred Resignation Programs Across Multiple Agencies

Many federal employees are receiving a familiar email in their inboxes as several government agencies revive the option for employees to voluntarily leave their positions in exchange for a few months of pay. The Department of Agriculture, Department of Defense, Department of Energy, Department of Transportation, Department of Housing and Urban Development, the Small Business Administration, and the General Services Administration have all restarted their deferred resignation programs, as confirmed by Federal News Network.

A Strategic Move Amid Workforce Reductions

The relaunch of the so-called “fork in the road” program at these seven agencies coincides with many agencies beginning to implement plans for conducting reductions in force (RIFs). The Department of Agriculture (USDA) has stated that its second round of the deferred resignation program mirrors the original offer from the Office of Personnel Management. USDA is extending this option to both permanent and term employees, including those still in their probationary periods, as detailed in an all-staff email obtained by Federal News Network.

According to USDA, employees who apply and are granted an offer of deferred resignation will be placed on administrative leave sometime between April 15 and April 30. Those who accept the offer will retain all pay and benefits until September 30 and will be exempt from return-to-office requirements. Similar to the first round of the “fork in the road” offers, USDA stipulates that employees wishing to resign must apply and sign necessary paperwork before their resignation is accepted. Notably, certain employees in “critical” positions may not be eligible for this offer.

USDA's Commitment to Transparency

In its communication to staff, USDA expressed gratitude to those choosing to remain in their current roles, emphasizing a renewed focus on serving the American public. The agency acknowledged uncertainty regarding which positions will remain after the restructuring but assured employees that they would be treated with dignity and would benefit from existing protections should their positions be eliminated. Employees at USDA have until April 8 to make their decisions regarding the deferred resignation program.

Energy Department's Approach to Workforce Management

At the Department of Energy, leadership indicated that the relaunch of the deferred resignation program is part of its strategy for workforce reduction. Energy Secretary Chris Wright noted in a staff email that this program aims to mitigate the impact of potential involuntary separations, allowing employees to plan their futures while still receiving pay and benefits during the designated period. Employees in essential roles, including public safety and national security positions, may not qualify for this program. The second round of offers began on Monday, with a decision deadline of April 8 for DOE employees.

Transportation Department's Voluntary Exit Option

Similarly, the Department of Transportation described the relaunch of its deferred resignation program as a “second chance to voluntarily leave.” However, employees working in safety-critical functions will not be eligible for this opportunity. A spokesperson for DOT stated that this program is part of broader efforts to enhance the agency's efficiency and accountability to taxpayers. In January, the White House had offered most of the federal workforce the option to resign in exchange for eight months of pay, which resulted in approximately 75,000 federal employees accepting the offer.

Responses and Challenges from Federal Employee Advocates

Despite the initial success of the program, many federal employment attorneys and unions have raised concerns regarding the guarantees of pay and benefits through the end of September. The earlier governmentwide version of the deferred resignation program faced delays due to litigation. Following the Feb. 12 deadline of that program, significant layoffs were initiated for probationary federal employees, alongside directives for agencies to devise RIF and reorganization plans.

New Opportunities at HUD and Other Agencies

In the Department of Housing and Urban Development, 7.4% of employees accepted the initial “fork in the road” offer. After the expiration of the governmentwide deferred resignation offer, HUD leaders reported receiving inquiries from employees wishing they had participated. Consequently, HUD is launching a second deferred resignation program, providing employees until April 11 to make their decisions.

Additionally, the Defense Department has reopened its “fork in the road” offer while continuing to provide incentives for early retirements and voluntary separations. Defense Secretary Pete Hegseth explained that these measures aim to reduce the number of civilian full-time equivalent positions while reallocating resources where needed. The renewed offer for DoD employees expires April 11.

GSA and SBA's Commitment to Workforce Optimization

Both the Small Business Administration and the General Services Administration have also reopened their deferred resignation programs, promising the same pay and benefits guarantees to employees who opt for this route. The GSA’s deadline for the deferred resignation program is April 4, while the SBA’s deadline is April 7. These extensions indicate a proactive approach towards significantly reducing staff headcounts, with GSA aiming to cut total spending by 50% and SBA planning a 43% workforce reduction.

In conclusion, by extending and reopening the deferred resignation programs, these agencies are providing federal employees with options to navigate upcoming organizational changes more effectively. For further insights and updates on changes within the federal government, feel free to reach out to the reporter at drew.friedman@federalnewsnetwork.com.

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