Washington/New York: Federal agencies across the United States have renewed a voluntary exit program aimed at reducing the government workforce—an initiative that follows the first wave of sweeping layoffs orchestrated by Elon Musk’s Department of Government Efficiency (DOGE). However, the latest round of offers comes at a turbulent time, with new tariffs introduced by President Donald Trump rattling financial markets and raising questions about the program’s appeal.
Roughly 75,000 federal employees accepted the original buyout offer, but analysts now caution that the current economic climate may discourage further participation. The Treasury Department, Department of Defense, and the Office of Personnel Management (OPM) are among several agencies offering a revised version of the “deferred resignation program,” which allows employees to take paid administrative leave until September before formally stepping down.
On Monday, the Department of Homeland Security (DHS) issued an internal communication urging non-law enforcement staff to consider options such as early retirement, resignation, or accepting a buyout of up to $25,000.
Despite multiple agencies participating, including the Departments of Labor and General Services Administration (GSA), none—including DOGE, the White House, and OPM—immediately responded to requests for comment.
Experts are skeptical about how effective the renewed program will be. With job market conditions tightening in the wake of Trump’s new tariff regime, which many fear could tip the economy toward recession, economists question how many federal workers will opt for voluntary departure.
“It will be harder to make the transition to the private sector if we’re in the depths of a recession,” said Peter Morici, an economist at the University of Maryland, in an interview.
His concern is echoed within a growing Reddit group frequented by federal workers. The forum, which has served as a digital lifeline since the Musk-led staff purge began, is brimming with warnings that job prospects outside government are becoming increasingly bleak.
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In an internal memo dated Friday, Acting OPM Director Chuck Ezell wrote, “This new offer provides employees the option to take paid administrative leave through Sept. 30, 2025.” He added that it serves “as a tool to avoid reductions in force,” referring to formal mass layoffs.
GSA, which oversees the federal real estate portfolio, confirmed its offer also includes employees already marked for termination. The Labor Department declined to comment.
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This renewed buyout program reflects broader efforts to trim the federal bureaucracy. It draws inspiration from the now-notorious “fork in the road” email issued on January 28, which extended a similar offer to the entire civilian federal workforce—estimated at around 2 million full-time employees.
That message preceded a massive culling of probationary workers spearheaded by DOGE. While a judge has since ordered the reinstatement of many of those terminated, citing likely unlawful dismissals, the department is now advancing with a second wave of deep cuts across federal agencies.
