In January 2025, the Trump administration launched a controversial federal workforce initiative known as the “Deferred Resignation” program. Announced by the Office of Personnel Management (OPM) in a memo titled “Fork in the Road,” the program allowed federal employees to resign voluntarily and continue receiving full pay and benefits without performing any duties through September 30, 2025. Initially criticized as a political maneuver, the program was framed as an effort to improve government efficiency and incentivize a return to in-person work.

The White House argued that the program would help streamline a bloated workforce, especially in light of data showing only 6% of federal employees in Washington, D.C., were working on-site. Participation was slow at first, with only about 2% (40,000 workers) accepting the offer by early February. However, following an extension of the deadline to February 12, numbers swelled to 154,000 employees—or 6.7% of the federal civilian workforce—by July.

Legal challenges quickly emerged. Multiple federal employee unions filed lawsuits questioning the legality of extended paid administrative leave without congressional appropriation. They cited possible violations of the Anti-Deficiency Act and the Administrative Procedure Act, claiming the program was coercive, not truly voluntary. A federal judge temporarily blocked the resignation deadline before ultimately allowing the program to continue.

Despite being advertised as cost-saving, the program’s price tag became a major concern. Senate investigators reported that $21.7 billion had been spent by mid-2025, with $14.7 billion paid to those who resigned and $6.7 billion used for employees still on administrative leave amid ongoing lawsuits and agency restructuring.

Critics argued the program harmed essential services and misused taxpayer dollars, while supporters insisted it was a necessary restructuring tool. Debate continues over whether it delivered any long-term value or simply created chaos within the federal system.

Fallout was significant. Key agencies, including the Departments of Energy and Defense, began further layoffs and early retirements, raising fears about national security, institutional knowledge loss, and the overall capacity of the federal government moving forward.