The Trump administration announced that it will no longer accept entries for a controversial scheme called ‘deferred resigning’, which offered federal employees financial incentives to quit their jobs.
The “buyout” program, designed to reduce the number of US Government jobs and encourage employees to return to work, provided an eight-month pay for those who chose to leave.
After a US District Judge George O’Toole ruled that the trade unions who tried to stop the program lacked the legal standing, the scheme was closed. US media reported that despite this legal battle, 75,000 federal employees were already enrolled in the program before its closure.
The US Office of Personnel Management announced on its website that the Fork in the Road program ended officially at 19:20 ET, 12 February.
Elon Musk, the tech billionaire and head of the Department of Government Efficiency of the Trump Administration, is leading the initiative.
The “substantial” majority of federal employees who elect to remain in their current jobs will be required to report to their offices physically five days per week
On 28th January, over two million federal employees were offered eight-months’ pay in exchange for a voluntary resignation. Musk sent an email to his employees shortly after acquiring Twitter, which is now X, with a similar proposal.
The deadline for federal employees to accept the agreement was initially 6 February, but this date has been extended because of the legal challenge that followed. The deal was only for full-time federal workers. It excluded military personnel, immigration officials, national security officials, and postal employees.
Karoline Leavitt, White House Press Secretary, described the offer and claimed it would save Americans tens millions of dollars. Democrats, unions and advocacy groups raised concerns over a possible “brain-drain” within the federal government, and questioned its legality.
The American Federation of Government Employees and other unions deemed the offer illegal. They argued that it forced employees to resign under threat of losing their jobs without compensation. The unions also pointed out that the eight-month pay was not guaranteed, since Congress had not approved funding for government beyond mid-March.
The judge initially ordered the program to be halted, but he ruled later that the unions lacked the legal standing to contest it in court. The White House is yet to comment on the ruling.
Everett Kelley, the national president of AFGE, said that firing a large number of federal employees would not reduce the demand for government services. This will only make it harder for Americans to get the services they need, especially veterans and seniors.
