What’s going on with Trump’s proposed buyouts for federal workers? Nobody knows

On Tuesday, President Trump issued a sweeping freeze on federal funding that drew widespread confusion before later being rescinded. But it was quickly followed by another pronouncement that could have major ripple effects across the federal government.

In a move that echoed Elon Musk’s proposal to Twitter employees back in 2022—down to the email subject line—the Trump administration made a surprising offer to two million federal workers. If they voluntarily resigned, they would receive full pay through the end of September; otherwise, they would risk being furloughed or reclassified as at-will employees. Those who stayed would also have to abide by the new return-to-office policy, which would require them to come in daily. Workers were told they had just over a week to consider and accept the offer.

The bold announcement was, again, teased by Musk (and Vivek Ramaswamy) last year in an op-ed in the Wall Street Journal about plans for the Department of Government Efficiency (DOGE). “Requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that we welcome,” they wrote at the time.

But Trump’s “deferred resignation” offer has elicited more questions than answers among federal workers and observers who have questioned whether it is legally sound.

How will the buyouts work?

Many federal workers were reportedly confused about whether they would be expected to continue working if they moved forward with the offer. Some workers were also unsure if the offer even applied to their roles, given the exemptions for those in certain roles across national security and immigration enforcement. In its memo, the Office of Personnel Management (OPM) said workers should send an email with the subject line “Resign” if they wished to leave. But the deferred resignation letter they were asked to accept suggested that being placed on leave was only one potential outcome.

“I understand my employing agency will likely make adjustments in response to my resignation including moving, eliminating, consolidating, reassigning my position and tasks, reducing my official duties, and/or placing me on paid administrative leave until my resignation date,” the letter read.

In an FAQ section, however, the OPM noted that “Except in rare cases determined by your agency, you are not expected to work.” Multiple posts on X from Elon Musk and the official DOGE account confirmed that information, and a senior White House official also told Axios that workers would not have to keep working if they accepted the offer, aside from taking care of customary tasks like returning work devices.

Still, the American Federation of Government Employees (AFGE)—the union that represents hundreds of thousands of federal workers—has instructed its members not to accept the terms of the resignation offer. (In fact, many workers seem more emboldened to stay put following the proposal.) In a statement, AFGE president Everett Kelley said Trump’s ploy to cut millions of federal workers would have “vast, unintended consequences that will cause chaos for the Americans who depend on a functioning federal government.” The AFGE has also pushed back on the characterization of this offer as a buyout, arguing that it does not guarantee an employee’s resignation will be accepted or that they will receive the benefits being promised.

“This offer should not be viewed as voluntary,” Kelley added. “Between the flurry of anti-worker executive orders and policies, it is clear that the Trump administration’s goal is to turn the federal government into a toxic environment where workers cannot stay even if they want to.” (The OPM did not respond to a request for comment.)

Is any of this legal?

Beyond the question of whether federal employees who resign will be expected to work in any capacity, it’s not clear whether the Trump administration can legally make an offer of this scale. Federal workers are not typically allowed to be on paid administrative leave for more than 10 days in a given year, and Trump has not received budget authorization from Congress for the buyouts.

Some federal employees have already expressed concerns that they won’t see the money that Trump has promised. The AFGE and Democrats such as Senator Tim Kaine have also cautioned that federal employees who quit may not be guaranteed months of pay. “There’s no budget line item to pay people who are not showing up for work,” Kaine said on the Senate floor this week. “If you accept that offer and resign, he’ll stiff you.”