What is the Current Status of Trump’s ‘Buyout’ Plan?

What is the Current Status of Trump’s ‘Buyout’ Plan? 

President Trump’s initiative to downsize the federal workforce through buyout offers has encountered significant challenges, leading to unintended consequences. The administration proposed that federal employees resign by February 6, 2025, in exchange for full pay and benefits through September 30, aiming to reduce government spending and streamline operations. brookings.edu

However, this plan has faced legal obstacles. On February 6, a U.S. District Judge temporarily blocked the administration’s buyout program, citing concerns about its legality and the potential for irreparable harm to federal operations. reuters.com

This injunction was later lifted on February 13, allowing the program to proceed, but not without ongoing controversy. forbes.com

Additionally, the buyout offer has reportedly backfired in some respects. Instead of encouraging resignations, the ultimatum has galvanized many federal workers to remain in their positions out of principle, resisting what they perceive as an unjust push to leave. newrepublic.com

Furthermore, labor unions have filed lawsuits against the administration, fearing mass firings of employees who do not accept the buyout offers, arguing that such actions undermine congressional authority over the federal workforce. reuters.com

As of now, the future of the buyout program remains uncertain, with legal battles and employee resistance posing significant hurdles to its implementation.

Table of Permissible Changes in FEHB Enrollment and Premium Conversion Election 

Table of Permissible Changes in FEHB Enrollment and Premium Conversion Election 

Source: OPM.gov

Premium Conversion allows employees who are eligible for FEHB the opportunity to pay for their share of FEHB premiums with pre-tax dollars. Premium conversion plans are governed by Section 125 of the Internal Revenue Code, and IRS rules govern when a participant may change his or her election outside of the annual Open Season.

All employees who enroll in the FEHB Program and are eligible for premium conversion automatically receive premium conversion tax benefits, unless they waive participation. When an employee experiences a qualifying life event (QLE) as described below, changes to the employee’s FEHB coverage (including change to Self Only and cancellation) and premium conversion election may be permitted, so long as they are because of and consistent with the QLEs. For more information about premium conversion, please visit OPM Healthcare.

Memo Outlines Plan to Cut Around 80K VA Employees 

Memo Outlines Plan to Cut Around 80K VA Employees 

A reduction in force memo from the VA has outlined plans to return that workforce to its 2019 force level of around 400,000 employees, representing a total cut of around 80,000 workers.

“VA, in partnership with our DOGE leads, will move out aggressively, while taking a pragmatic and disciplined approach to identify and eliminate waste, reduce management and bureaucracy, reduce footprint, and increase workforce efficiency,” said the internal memo dated March 4, adding that some of the savings would be reinvested. Follow link to read more from FEDweek. https://www.fedweek.com/fedweek/memo-outlines-plan-to-cut-around-80k-va-employees/

OPM’s Goals and Procedures for Agency RIFs

OPM’s Goals and Procedures for Agency RIFs

The Office of Personnel Management (OPM) has laid out goals and procedures for agency Reductions in Force (RIFs). The guidance is part of the President’s “Department of Government Efficiency” Workforce Optimization Initiative. Here are some key points:

  1. Goals:
    • Better service for the American people.
    • Increased productivity.
    • Significant reduction in the number of full-time equivalent (FTE) positions by eliminating non-essential positions.
    • Reduced real property footprint.
    • Reduced budget topline. 1,2
  1. Procedures:
    • Agencies should focus on eliminating functions that are not statutorily mandated while ensuring efficient delivery of required functions.
    • Consolidate duplicative areas and management layers.
    • Implement technological solutions to automate routine tasks.
    • Close or consolidate regional field offices where consistent with efficient service delivery.
    • Reduce the use of outside consultants and contractors. 1,2

For more detailed information, you can check out the OPM’s official page on RIFs.

  1. opm.gov
  2. fedweek.com

A Pair Of House Bills Aim To Give Fired Feds Relief 

A Pair Of House Bills Aim To Give Fired Feds Relief 

Legislation from Reps. Sheila Cherfilus-McCormick, D-Fla., and Derek Tran, D-Calif., seeks to secure benefits for federal employees recently fired by the Trump administration and help get some of their jobs back.

As reports of firings and reductions in force continue to emerge from agencies across the federal government, a legislative push back on Capitol Hill has commenced.

A pair of bills from Reps. Sheila Cherfilus-McCormick, D-Fla., and Derek Tran, D-Calif., introduced on Feb. 26, aim to provide some relief for federal employees recently let go by the Trump administration, albeit with different focuses. Follow link to read more from Government Executive. https://www.govexec.com/pay-benefits/2025/03/pair-house-bills-aim-give-fired-feds-relief/403457/