As the clock ticked toward the original midnight February 6, 2025 deadline, federal employees across the United States grappled with a significant decision.
President Donald Trump's administration had extended an unprecedented "deferred resignation" offer to approximately 2.3 million federal workers, promising continued pay through September 30, 2025, if they agree to resign by the deadline.
However, the offer has been mired in legal controversies and uncertainty, leaving many workers in a precarious position. Last week, some IRS workers were informed that they can’t take advantage of the offer until after tax season ends.
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And now, in a developing story, a federal judge paused the employee buyout pending a court hearing and is now letting the program move forward. But the new deadline to take the offer was February 12. Confused? Here’s more of what you need to know, beginning with what the government buyout is.
What is the federal employee buyout?
The government buyout is a "deferred resignation program" introduced by the Trump administration. It's also been referred to as a "Fork in the Road" program." Here's what happened.
- Eligible federal employees were initially offered the option to voluntarily resign by February 6, 2025. That deadline changed to February 12.
- Those who accepted would continue to receive their full salary and benefits until September 30, 2025, providing about eight months of compensation after resignation.
- Employees were required to waive their right to take legal action against their agency regarding employment matters.
- Accepted employees would be exempt from in-person work requirements until September 30, 2025.
- To accept the offer, employees needed to respond to the official email with the word "resign."
Note: Some employees deemed by the Trump administration to be essential were ineligible for the buyout or would have to delay their resignation through the program.
Judge considers buyout program
Three federal unions representing 800,000 civil servants sued, arguing that the buyout offer was unlawful and arbitrary. (The unions include the American Federation of Government Employees, the National Association of Government Employees, and the American Federation of State, County and Municipal Employees.)
They argue the offer violates the Administrative Procedure Act and could result in a "dangerous one-two punch" to the federal government by depleting expertise and potentially politicizing vacant positions.
A federal judge in Massachusetts, George O'Toole Jr., considered a request for a temporary restraining order to suspend the deadline and require the Office of Personnel Management (OPM) to provide a legal basis for the offer.
Judge O-Toole has temporarily paused President Trump's controversial federal employee buyout plan. The decision came just hours before the original "Fork Directive" deadline.
The order essentially:
- Extended the deadline for employees to consider the offer
- Required the government to inform all eligible employees about the extension
The judge has now let the program move forward. As mentioned, this judicial intervention comes at a critical time, with tens of thousands of federal workers having already reportedly accepted the offer.
Some key legal concerns for federal workers include:
Waiver of Rights: The contract requires employees to "forever waive" their right to take legal action against the agency regarding their employment or the deferred resignation offer.
Funding Uncertainty: The current budget financing the federal government expires in March, raising questions about the assurance of pay through September.
Potential Cancellation: Some departments, like the U.S. Department of Education, reportedly informed staff that the buyout deals could be canceled.
Congressional Authorization: Some employment lawyers question whether the offer is lawful, as Congress, not the White House, is responsible for authorizing workers' paychecks.
How Many Federal Workers Took the Buyout? Even with those concerns, more than 70,000 federal workers (according to the White House), or roughly 3% of the civilian federal workforce, had reportedly accepted the deferred resignation offer as of February 12, 2025. That outside number marks a significant increase from the 20,000 or so acceptances reported just a week earlier, indicating a potential last-minute surge as the deadline approached.
The Trump administration wants to convince up to 10% of the federal workforce to resign, which it says will save the federal government $100 billion annually.
Some IRS workers must stay in their jobs longer
As Kiplinger reported, in a notable exception, certain IRS employees can’t participate in the buyout offer program until mid-May. This decision affects workers in critical roles within Taxpayer Services, Information Technology, and the Taxpayer Advocate Service.
The move is supposed to help safeguard the smooth operation of the 2025 tax filing season, culminating on Tax Day, April 15.
This exemption underscores the potential disruptions the buyout could cause to essential government functions.
For more information see: Trump Wants You Out At the IRS But Not Until May.
Deferred resignation program: Bottom line
In any case, many argue that widespread resignations could significantly impact the government's ability to provide services, such as tax refund processing, Social Security verification, and healthcare through Medicaid and Medicare.
And as federal employees face this critical buyout decision, either now or later, they will have to weigh any potential benefits against legal and financial risks.
Note: This story has been updated to reflect the number of federal employees who accepted buyout offers and the changing circumstances surrounding court action and the offer deadline.
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