U.S. Agencies Roll Out ‘Deferred Resignation’—Should Federal Workers Be Worried?

At least six federal agencies are offering employees a “deferred resignation” option as part of the Trump administration’s latest effort to reduce the size of the U.S. government.

On Monday night, workers at the Department of Housing and Urban Development (HUD) and the Agriculture Department received emails outlining the program, which allows employees to resign while remaining on paid leave for several months, according to emails obtained by NBC News.

The Transportation Department sent a similar notice to employees on Tuesday morning.

Spokespersons for the General Services Administration (GSA) and the Energy Department confirmed that they are also offering the program to eligible employees, while the Defense Department announced a similar initiative for its civilian workforce last Friday.

The White House has stated that approximately 75,000 federal employees participated in the first round of the program. That initial offer allowed workers to resign while receiving pay through September, and the newly launched programs follow a similar structure.

Eligibility varies by agency. For example, not all USDA employees qualify, especially those in critical positions.

Similarly, Transportation Department workers in public safety roles, such as those at the Federal Aviation Administration, are excluded.

A letter sent to Energy Department employees described the program as a way to “mitigate the effect of potential involuntary separations” and provide workers with time to plan their next steps while continuing to receive pay. HUD’s version of the program also includes specific provisions for employees planning to retire in the fall.

The initial “deferred resignation” program, introduced just before a potential government shutdown, raised concerns about whether employees would continue receiving payments if agency budgets remained uncertain beyond mid-March.

The recent passage of a full-year continuing resolution has led to renewed interest from employees who previously hesitated to participate, according to an email sent to HUD workers.

Defense Secretary Pete Hegseth ordered the relaunch of the program for nearly all civilian Defense Department employees in a memo issued Friday.

A news release on Saturday stated that the program aims to “maximize participation” and minimize the need for involuntary separations. The Defense Department had about 900,000 civilian workers before the first version of the program.

Deadlines for opting in vary by agency: Transportation Department employees must decide by Monday, Agriculture and Energy Department employees by April 8, HUD employees by April 11, and GSA employees by April 18. The Defense Department has not disclosed its deadline.

Unlike the initial program, which was coordinated across agencies and briefly challenged in court before being allowed to proceed in February, the new version is managed independently by each agency without direction from the Office of Personnel Management.

Meanwhile, in a separate initiative led by Elon Musk’s Department of Government Efficiency, the Health and Human Services Department is implementing major layoffs this week.

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