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Trump Administration's New 'Deferred Resignation' Program: What You Need to Know

4/1/2025
In a surprising move, several federal agencies are rolling out a 'deferred resignation' program, allowing employees to resign while still receiving pay for months. Learn how this impacts federal workers across the U.S.
Trump Administration's New 'Deferred Resignation' Program: What You Need to Know
Federal agencies unveil 'deferred resignation' program, letting employees resign while on paid leave. Key details and deadlines inside!

New Deferred Resignation Opportunity for Federal Workers

Washington — In a significant move to reduce the size of the U.S. government, at least six federal agencies are now offering their employees a new deferred resignation opportunity. This initiative, part of the Trump administration's broader strategy, allows federal workers to resign while still receiving paid leave for several months.

Details of the Program

Employees at the Department of Housing and Urban Development (HUD) and the Agriculture Department received emails on Monday night detailing this new option. According to reports from NBC News, similar notifications were sent to employees at the Department of Transportation (DOT) on Tuesday morning. The General Services Administration (GSA) has also confirmed that its eligible employees can participate in this deferred resignation program, while the Defense Department announced that its civilian workforce received a similar offer last Friday.

Participation Statistics

The White House recently stated that approximately 75,000 federal workers accepted the first offer of the deferred resignation program. The initial program allowed employees to resign immediately while continuing to receive pay until September. The new offerings follow a similar structure but come with specific eligibility criteria.

Eligibility Criteria

Not all employees are eligible for the deferred resignation program. For instance, the U.S. Department of Agriculture (USDA) has indicated that eligibility depends on whether a worker's position is deemed critical. Moreover, certain positions within the Department of Transportation are also excluded, particularly public safety roles at agencies such as the Federal Aviation Administration (FAA).

Concerns and Uncertainty

During the initial opt-in period for the deferred resignation program, many employees voiced concerns regarding its legitimacy, especially since agencies were operating under a temporary continuing resolution set to last until March 14, 2025. This uncertainty may have deterred some from taking advantage of the opportunity. Following the passage of a full-year continuing resolution, numerous employees have inquired about the reopening of the program, as mentioned in a HUD email.

Defense Department Initiatives

In a recent memo, Defense Secretary Pete Hegseth instructed his team to activate another deferred resignation program for nearly all Department of Defense (DOD) civilians. Prior to the first program, there were approximately 900,000 DOD civilian workers. Hegseth emphasized that the goal is to maximize participation to minimize the need for involuntary actions necessary to meet strategic objectives.

Deadlines for Acceptance

Employees interested in this deferred resignation opportunity should be aware of the deadlines for acceptance. For Department of Transportation employees, the deadline is April 7, while Agriculture Department employees have until April 8. HUD employees must respond by April 11. The GSA has extended the opt-in deadline for its eligible employees until April 18. Details regarding the Defense Department's deadline are still pending confirmation.

Communication and Challenges

Unlike the initial program, which was communicated through a system that reached all federal employees simultaneously, the new deferred resignation letters are tailored to each agency and are not governed by the Office of Personnel Management. The first version of the program faced legal challenges shortly after its announcement, but a federal judge ultimately allowed it to proceed after a temporary halt.

Additional Layoffs and Government Efficiency Initiatives

In a related effort led by Elon Musk's Department of Government Efficiency, the Health and Human Services Department is also implementing substantial layoffs this week. This move further underscores the ongoing efforts to streamline federal operations and reduce government size.

Reporting for this article was contributed by Megan Lebowitz and Ted Oberg from Washington, along with Daniel Arkin from New York City.

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