Trump’s Govt offers buyout packages to federal workers in major downsizing move

In a sweeping move to shrink the U.S. federal government, President Donald Trump has offered buyout packages to nearly all federal employees unwilling to return to office work.

An email sent to millions of federal workers on Tuesday outlined a “deferred resignation program,” giving employees until February 6 to decide whether they want to accept the offer.

Those who opt to resign will receive approximately eight months of salary as severance pay.

According to reports from CBS News, the Trump administration anticipates that around 10% of federal employees about 200,000 workers may accept the deal, potentially saving the government up to $100 billion.

“We cannot give you full assurance regarding the certainty of your position or agency but should your position be eliminated you will be treated with dignity,” it reads.

The email follows Trump’s earlier announcement that federal employees who had been working remotely since the Covid pandemic would be required to return to the office five days a week.

Speaking to CNN on Tuesday, Stephen Miller, the White House deputy chief of staff for policy, said the government’s two million workers were “overwhelmingly left of centre”, adding it was “essential” for Trump to “get control of government”.

Trump repeatedly pledged to cut the size of the government and slash federal spending while on the campaign trail.

He tasked Elon Musk and Vivek Ramaswamy with leading an advisory body focused on cutting regulations, spending, and headcounts within the federal government. Ramaswamy has since left the “Department of Government Efficiency” (Doge).

But the email on Tuesday bears a resemblance to one sent to Twitter, now X, employees in late 2022 after Musk bought the social media platform. He asked for an emailed response if they wanted to remain at the company.

The mass buyout offer came at the end of an at-times chaotic day in Washington, following a memo Trump issued which said he would pause federal grants, loans and other assistance.

A district judge suspended the order – which was initially set to go into effect on Tuesday afternoon – until next Monday.

In the hours before that decision, there was widespread confusion over which federal programmes and organisations would be impacted. The White House repeatedly sought to assuage concerns that Social Security payments and Medicaid access could be disrupted.

In a letter to the White House, top Democrats expressed “extreme alarm” about the plan to pause funding.

Also on Tuesday, Trump signed an executive order aimed at restricting gender care for young people.

The order, titled ‘Protecting Children from Chemical and Surgical Mutilation’, says it will prevent those aged under 19 from making “life-altering” choices.

“It is the policy of the United States that it will not fund, sponsor, promote, assist, or support the so-called ‘transition’ of a child from one sex to another,” the order says.

It is unclear, however, how the order would be implemented and it is likely to be challenged in court.