More than 40,000 federal employees have signed up for the Trump administration's retirement offer, spearheaded by Elon Musk, as they prepare for potential mass layoffs ahead of Thursday's buyout deadline.
About 2% of the federal civilian workforce has signed up for the offer. The Office of Personnel Management (OPM) reported that the number of applications was continuing to grow, with a surge expected as the deadline approached, Bloomberg reported.
The deadline for federal employees to apply for the offer is the end of Thursday, Washington time. Workers can apply by sending the word "resign" from their government email accounts.
Trump, Musk push for a smaller government
The offer is part of an effort by President Donald Trump and Musk, the CEO of Tesla 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. The White House had initially estimated that between 5% and 10% of federal employees might take up the offer.
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 sensitive 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, reported AP.
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 or not they accept the offer. The staff are deleting their 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.
At the Department of Education, one employee spoke out about the potential risks of signing the agreement, citing concerns over a clause that would waive the right to sue if the government failed to honor the deal.
However, 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 1 p.m. Eastern time on Thursday.
Everett Kelley, national 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.
