Federal Employees Embrace Buyout Offers Amid Layoff Fears, 7% of Transportation Dept. Applies

Federal employees, who had previously scoffed at Elon Musk's infamous "Crossroads" buyout proposal, have now shown a significant shift in attitude towards the second round of buyout offers presented by various institutions. The Department of Energy saw at least 2,700 employees applying for the buyout, more than double the initial 1,300 applicants. Similarly, the Department of Transportation received applications from approximately 4,000 employees, representing about 7% of its workforce. This change in sentiment highlights a growing acceptance among federal employees of the buyout option, which was initially met with skepticism and resistance.

The surge in applications suggests that the financial incentives and job security concerns may have influenced the employees' decision to reconsider the buyout proposal. The increased number of applicants indicates a potential shift in the workforce dynamics within these federal agencies, as employees weigh the benefits of the buyout against the uncertainties of their current roles. The buyout proposal, which was initially seen as a controversial move, now appears to be gaining traction as employees seek to secure their financial future amidst ongoing changes in the federal workforce.

Employees from multiple agencies, including the Department of Defense, Department of Energy, and Department of Transportation, were given a deadline this month to either resign now and continue receiving their salary until September or face potential layoffs. The "Crossroads 2" proposal, as it is being called by employees, has forced remaining staff to make difficult choices. Many initially resisted the first buyout offer, despite the threat of future layoffs, as they wanted to continue their public service work that they had dedicated decades to.

However, witnessing the sweeping reforms and mass layoffs in various departments by Musk's government efficiency department, many employees now feel that the struggle may not be worth it. The Department of Energy, which regulates the U.S. nuclear reserve, saw at least 2,700 employees apply for the buyout, more than double the 1,300 who left in the first delayed resignation wave. The Department of Transportation had approximately 4,000 employees (about 7% of its workforce) apply to accept the buyout offer.

The scale of this buyout wave is still uncertain. Unlike the first buyout offer, which was handled centrally by the Office of Personnel Management with approximately 75,000 employees choosing to leave, this wave is being managed individually by each agency. Some agencies still have deadlines for buyout applications later this month. A senior security official from the Department of the Interior noted that high-level managers are more inclined to accept the second buyout offer, despite some supervisors attempting to assure remaining employees that the agency's operations would not completely halt.

Employees are now experiencing firsthand the reality of layoff threats, even those disputed in ongoing court cases. The prospect of competing with other laid-off federal employees for private sector jobs has also motivated employees to leave sooner. A representative from the Department of the Interior declined to comment, while a spokesperson for the Office of Personnel Management stated that each agency is handling the buyout process independently and that the office does not track the total number of departing employees.

More layoffs are expected in the future as agencies implement their reduction plans. "Laid-off" employees receive only one week of severance pay for each year worked and lose their health insurance immediately. In contrast, employees who accept the buyout can continue to receive their salary and health insurance benefits until the end of September. This time, federal employees also have the benefit of hindsight. When the first "Crossroads" proposal was issued in January, many saw it as a ploy. The email, sent to all government departments just days after the Trump administration took office, caught everyone off guard. Democratic lawmakers, union representatives, and labor lawyers all urged employees to remain skeptical.

Earlier this month, a 15-page FAQ distributed to federal employees acknowledged the flaws in the first plan. The document stated, "Many employees expressed concerns about the effectiveness of the plan. This uncertainty may have caused some employees to not take full advantage of the plan." This second proposal, however, comes from within the agencies themselves, not from a random email address at the Office of Personnel Management. Employees received direct communications from their own agencies, and they now know that colleagues who accepted the first delayed resignation offer are indeed receiving their salaries.

Work within federal agencies is becoming increasingly unstable. The government has begun notifying employees that they will lose civil service protection (formerly known as F-type position regulations), meaning they could be fired at will, although the formal procedures required for these changes have not yet been completed. Many of these layoff plans are facing legal challenges, with related lawsuits still pending in court. However, Trump has secured a series of victories that could further encourage employees to leave. This week, agencies are also expected to submit reorganization plans, which may include additional rounds of layoffs, employee position shifts, or other proposals that could reduce the appeal of government work.