Former President Donald Trump has launched a sweeping initiative to shrink the U.S. government, offering federal employees eight months’ pay to voluntarily resign. The move is part of a broader effort, spearheaded in collaboration with billionaire Elon Musk, to reduce government spending.
A memo from the Office of Personnel Management (OPM) informed federal workers that they have until February 6 to decide whether to accept the severance package. The plan, known as the “deferred resignation” program, aims to cut up to 10 percent of the federal workforce, excluding employees in immigration, national security, and the U.S. Postal Service.
While the total impact remains uncertain, the U.S. government employs more than three million people, and significant job cuts could disrupt operations across multiple agencies.
The OPM memo also hinted at future downsizing, stricter workplace conduct policies, and reduced remote work opportunities.
Federal employee unions have strongly criticized the initiative, warning that it could force workers out through fear and intimidation.
“It is clear the Trump administration’s goal is to turn the federal government into a toxic environment where workers cannot stay even if they want to,” said Everett Kelley, president of the American Federation of Government Employees.
The National Treasury Employees Union, representing 150,000 federal workers, urged its members not to resign, stating, “The email is designed to entice or scare you into resigning… We strongly urge you not to resign in response.”
The subject line of the OPM email, “Fork in the Road,” mirrored a phrase used by Elon Musk in a 2022 email to Twitter employees during mass layoffs. Musk later referenced the memo in a post on X (formerly Twitter) and urged federal workers to “hit send” to accept the resignation offer.
The memo included a “deferred resignation letter,” allowing employees to resign while retaining full pay and benefits until September 30. They would also be exempt from in-person work requirements.
In a separate move, Trump’s administration has paused federal grants and loans as part of a wider strategy to cut government expenditures. The Office of Management and Budget (OMB) issued a directive on Monday, instructing agencies to temporarily halt spending that may conflict with the administration’s policy agenda.
The funding freeze has already triggered legal action. On Tuesday, non-profit organizations reported being unable to access federal systems for payroll and operational expenses.
Within minutes of the freeze taking effect, U.S. District Judge Loren L. AliKhan issued an emergency order blocking the policy, pending further legal review. A court hearing is scheduled for Monday to determine whether the freeze will be permanently overturned.
