The Trump Administration’s “Deferred Resignation” Program: What You Absolutely Need to Know
In January 2025, the Office of Personnel Management (OPM) launched a highly controversial “deferred resignation” or “buyout” initiative—known internally as the “Fork in the Road” memo. This unprecedented offer invited up to 2.3 million federal civilian employees to resign by mid-February (originally February 6, later extended to February 12), while still receiving full pay and benefits without work obligations through September 30, 2025.
Purpose and Implementation
Touted as a bold move to boost government efficiency and encourage a return to in-person work, the program came amid reports that just 6% of Washington, D.C. federal staff were working on-site. The White House and OPM framed the initiative as a voluntary, cost-saving workforce restructuring designed to modernize federal operations.
Participation: Expectations vs. Reality
Initial estimates predicted about 10% employee participation, yet only around 2% (40,000 employees) opted in by early February. However, by July 2025, the buyout gained unexpected momentum, with approximately 154,000 employees—about 6.7% of the civilian workforce—accepting the offer and remaining on paid leave through summer.
Legal Battles and Opposition
From the outset, the program ignited fierce legal challenges. Critics questioned the legality of extended paid leave without explicit congressional funding, raising alarms over potential breaches of the Anti-Deficiency Act and the Administrative Procedure Act.
Multiple unions swiftly filed lawsuits, urging workers to reject the buyout and arguing the initiative was coercive rather than truly voluntary. A federal judge temporarily blocked the February deadline for review, extending the acceptance window—though the program ultimately moved forward after the injunction was lifted.
Costs, Controversies, and Consequences
By mid-2025, what was pitched as a cost-saving strategy ballooned into a massive and costly effort. Senate investigators estimated a staggering $21.7 billion spent—$14.7 billion paid to resigning employees and another $6.7 billion funding those on administrative leave amid legal disputes or agency reorganizations.
Detractors warned the buyout drained essential government services and wasted taxpayer money, while supporters maintained it was a necessary step for long-term federal workforce modernization.
The Long-Term Fallout
The impact rippled beyond the buyouts. Federal agencies including the Department of Energy and Defense launched further cuts, early retirements, and layoffs—raising serious national security and workforce capacity concerns.