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Trump Administration's Federal Employee Buyout Plan Faces Legal and Workforce Challenges

With a February 6 deadline, only 1% of federal employees have accepted the offer, while unions file lawsuits questioning its legality and impact.

FILE - This April 13, 2016 file photo shows the seal of the Central Intelligence Agency at CIA headquarters in Langley, Va.  (AP Photo/Carolyn Kaster, File)
The seal of the Central Intelligence Agency is shown at the entrance of the CIA headquarters in McLean, Virginia, U.S., September 24, 2022. REUTERS/Evelyn Hockstein/File Photo
John Ratcliffe

Overview

  • President Trump's administration offered federal employees a buyout plan, providing full salary and benefits through September 30, 2025, if they resign by February 6.
  • As of Tuesday, approximately 20,000 federal workers—about 1% of the workforce—have accepted the offer, far below the administration's expectations of 5% to 10%.
  • The CIA became the first national security agency to extend the buyout offer to its entire workforce, with Director John Ratcliffe citing alignment with Trump's national security priorities.
  • Unions representing federal workers have filed lawsuits, arguing the buyout plan is unlawful, unfunded, and creates risks for government functionality due to potential mass resignations.
  • The Trump administration has indicated that workers declining the buyout could face future layoffs as part of its broader effort to reduce the size of the federal government.