The Trump administration’s Deferred Resignation Program, introduced in early 2025, has ignited a nationwide debate over federal workforce reduction strategies. This initiative offered nearly 2 million civilian federal employees the option to resign by February 6, 2025, with continued pay and benefits through September 30, 2025. The program aimed to streamline government operations and address low in-person attendance rates among federal workers.

Supporters, including White House Press Secretary Karoline Leavitt, argue that the program is a performance-driven effort to enhance efficiency and restore value to taxpayers. They contend that years of remote work have eroded productivity, and this initiative provides a choice for employees to transition out of government service.

However, critics, particularly labor unions, view the program as a coercive tactic that pressures long-serving employees to resign. They argue that the offer lacks legal standing and could disrupt essential government services by thinning the workforce.

A federal judge in Boston ruled that the unions lacked legal standing to challenge the program, allowing it to proceed.  As of early October 2025, approximately 154,000 federal employees had accepted the buyout offer, with many exiting by the end of the fiscal year.

The program has led to significant workforce reductions across various agencies, including the IRS, which is facing a potential 40% staff reduction. These changes coincide with a government shutdown, raising concerns about the stability of federal services and the broader impact on the economy.

As the deadline has passed and the program is now closed to new applicants, the long-term effects on federal operations and employee morale remain to be seen. The Deferred Resignation Program continues to be a focal point in discussions about the future of public service in America.