US agencies offer staff new buyouts ahead of Trump's layoff deadline

(Reuters) -Multiple government agencies are turning to early retirement programs to reduce headcount as they scramble to meet President Donald Trump's Thursday deadline for them to submit plans for a second round of mass layoffs.

The Office of Personnel Management, the Social Security Administration, and the Department of Health and Human Services, including its Food and Drug Administration, are among the agencies which have offered lump-sum payments of up to $25,000 before tax to workers who agree to leave their jobs.

The buyout offers, combined with another program that eases eligibility requirements for early retirement, are being embraced as a lower-friction way to help meet the Thursday deadline, human resource specialists at several federal agencies told Reuters.

The Trump administration has been grappling with myriad lawsuits after it fired thousands of probationary workers in a first wave of mass layoffs and dismantled entire departments like USAID, the U.S. humanitarian aid agency, and the Consumer Financial Protection Bureau, which protects Americans against unscrupulous lenders.

All U.S. government agencies have been ordered to come up with large-scale layoff plans by Thursday as part of Trump's unprecedented campaign to overhaul the government. One of his top advisers, the tech billionaire Elon Musk, is leading that effort with his so-called Department of Government Efficiency.

The General Services Administration, which manages the government's property portfolio, is also seeking approval to offer the buyout payments to workers, according to an email sent by its acting head to staff on Monday and seen by Reuters. The Securities and Exchange Commission has already offered bonuses of up to $50,000, Reuters reported.

Human resource and public governance experts said the appeal of the buyout program, called voluntary separation incentive payments, is that it is voluntary and less vulnerable to legal challenges. It also requires workers who have accepted the offer to repay the money if they take another government job within five years.

"If your strategy is to get as many people out the door voluntarily, that reduces the risk of court orders and opposition to you in the long run," said Don Moynihan, a public policy professor at the University of Michigan.

OPM STILL WAITING FOR PLANS

Only a couple of agencies have telegraphed via media leaks how many employees they plan to cut in the second phase of layoffs. They include the Department of Veterans Affairs, which is aiming to cut more than 80,000 workers, and the National Oceanic and Atmospheric Administration, which is planning to cut 1,029 staff.

Despite the looming deadline, no agency has yet submitted its job-cutting plan to OPM, the government's human resources department that is collating the data, a person familiar with the matter told Reuters. OPM declined to comment.

OPM itself has offered lump-sum payments to some 650 OPM employees, according to another person with knowledge of the matter. Employees were given until March 12 to respond.

At the General Services Administration, employees were informed on Monday that OPM had greenlit a plan to offer an early retirement program to all eligible employees.

"I encourage each of you to consider your options as we move forward," GSA Acting Administrator Stephen Ehikian wrote in an email seen by Reuters. "The new GSA will be slimmer, more efficient and laser-focused on efficiency and high-value outcomes."

On March 10, the HR department of the Food and Drug Administration sent an email to all its 19,000 employees announcing a Friday, March 14, deadline to opt into a VSIP. Those who accept would have to retire by April 19.

"There will be no extensions," states the email, reviewed by Reuters and signed by Tania Tse, director of the FDA's Office of Human Capital Management.

Late on Monday, HHS sweetened its prior VSIP offer by adding that workers accepting it would get two months of full pay in addition to the bonus, according to a copy of the email seen by Reuters.

Steve Lenkart, executive director of the National Federation of Federal Employees, a union which represents 110,000 government workers, said the Trump administration was using "a legitimate program to further damage the capabilities of agencies to complete their mission."

OPM declined to respond to Lenkart's comments.



(Reporting by Alexandra Alper, Tim Reid, Marisa Taylor and Nathan Layne; Editing by Ross Colvin and Daniel Wallis)