Only 40,000 Federal Workers Take Trump-Musk Retirement Offer As Deadline Nears

Much fewer federal workers have taken the Trump administration's offer to take months of pay to leave their jobs.

More than 40,000 federal employees have signed up for the offer that was spearheaded by Elon Musk.

The deadline to take the buyout is Thursday.

Only about 2% of the federal civilian workforce has signed up for the offer. The White House had hoped that 5%-10% of workers would take the offer amid concerns of layoffs.

The Office of Personnel Management claimed that the number of applications was continuing to grow, with a surge expected as the deadline approached, Bloomberg reported.

Workers can apply by replying to an emailed offer with the word "resign."

Trump, Musk push for a smaller government

The offer is part of an effort by President Donald Trump and Musk, the CEO of Tesla, X and SpaceX, to rapidly reduce the size of the federal government.

Since the beginning of Trump's second term, the administration has been exploring ways to cut government jobs.

Over the past decade, an average of 62,000 federal workers have retired each year, and close to 300,000 federal employees will be eligible for retirement in the next two years.

OPM has warned that employees who do not take the deal may face layoffs, restructurings, or reductions in force. The offer does not apply to employees in certain roles, such as those in defense, immigration, law enforcement or postal services.

Federal workers report uncertainty and fear

Despite reassurances from administration officials, concerns remain widespread across various agencies. Some federal employees also question the legitimacy of the offer, uncertain whether Trump has the legal power to distribute the funds, according to the Associated Press.

Employees at the General Services Administration (GSA) fear mass layoffs as the agency plans to cut spending in half, according to a Reuters report.

An employee at the GSA, who requested anonymity, said, "It's just chaos, no one is able to do any real work now."

Similarly, workers at the National Oceanic and Atmospheric Administration (NOAA) are uneasy about their job security. Employees are scared of losing jobs whether they accept the offer. The staff is deleting personal documents from their work computers, an employee said.

Musk's team has begun reviewing personnel records at NOAA, which has added to the uncertainty among staff.

Legal and political challenges ahead

Democrats and union leaders have expressed concern that workers might not be paid if they accept the deferred resignation offer. Since the program was not authorized by Congress, there was a risk that the government could fail to meet its financial obligations.

There were concerns about the legality of the offer. Federal worker unions have urged their members not to take the deal, arguing that it might not be legal, despite assurances from the administration.

Unions have filed a lawsuit to block the program, with a court hearing scheduled for Thursday.

Everett Kelley, president of the American Federation of Government Employees, called the offer a "scam" and warned that federal employees could be misled by the program.

"Federal employees shouldn't be misled by slick talk from unelected billionaires and their lackeys," Kelley said. "It's a scam and not a buyout."

Protests erupt in Washington

Meanwhile, protests have broken out outside federal buildings in Washington. One such protest took place on Tuesday outside OPM. Many federal workers were speaking out against the offer, fearing it could leave them vulnerable to unfair treatment or job loss.