icon
icon
icon
icon
Upgrade
Upgrade

News /

Articles /

Trump Administration's Buyout Plan Sees 15% of USDA Employees Depart

Word on the StreetSunday, May 4, 2025 2:02 pm ET
1min read

Over 15,000 employees of the United States Department of agriculture (USDA) have accepted a voluntary separation incentive program offered by the Trump administration. This figure represents approximately 15% of the USDA's total workforce. The program, aimed at reducing the federal workforce, provides eligible employees with several months of salary and benefits if they choose to leave their positions.

The USDA's voluntary separation program was implemented in two phases. In February, 3,877 employees signed contracts under the first phase of the Deferred Resignation Program. By April, an additional 11,305 employees had signed up for the second phase, bringing the total number of participants to 15,182. The program is expected to see further participation in the coming months, as employees over the age of 40 have more time to decide whether to leave, and some who have chosen to depart have yet to finalize their contracts.

The Trump administration has been actively working to downsize the federal government. On February 11, President Trump signed an executive order aimed at reducing the number of federal employees. Additionally, he issued another order directing government agencies to collaborate with a department led by Elon Musk to streamline operations and limit hiring, with the ultimate goal of shrinking the federal workforce.

The voluntary separation incentive program, often referred to as a "buyout plan," offers federal employees approximately eight months of salary compensation if they choose to leave their positions by a specified deadline. This plan provides a financial cushion for employees who opt to depart, ensuring that their pay and benefits continue until September 30. The program also offers flexibility in work arrangements, making it an attractive option for those considering a career change or early retirement.

The Trump administration's efforts to reduce the federal workforce are part of a broader strategy to enhance government efficiency and cut costs. By offering voluntary separation incentives, the administration aims to achieve these goals without resorting to forced layoffs, thereby minimizing disruption to government services. The USDA's participation in this program reflects the department's commitment to supporting the administration's initiatives while managing its workforce effectively.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.