In a sweeping move to reduce federal spending, the Trump administration has offered all two million federal employees an opportunity to resign in exchange for eight months of severance pay, according to AFP.

The initiative, detailed in an email sent to federal workers, is expected to result in a 5-10% reduction in the workforce, potentially saving the government $100 billion, a senior administration official told NBC News.

A historic decision backed by Elon Musk

The severance offer, which marks one of the most aggressive cost-cutting measures since President Trump took office on January 20, has been met with strong support from top Trump administration officials.

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Elon Musk, who leads the newly created Department of Government Efficiency, praised the plan as a “fork in the road” for federal employment.

Musk, a vocal advocate for reducing government bureaucracy, has been tasked with slashing federal spending and has played a key role in crafting the administration’s budget strategy.

“The federal workforce should comprise the best America has to offer. We will insist on excellence at every level,” the email stated.

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Resignation period and process

The resignation window will be open from January 28 to February 6, during which federal employees who wish to accept the offer must respond to the email with the word “resign.”

This voluntary departure incentive follows Trump’s recent mandate requiring all federal employees to return to full-time office work after years of remote arrangements due to the COVID-19 pandemic.

Broader spending cuts and policy shifts

The severance offer comes amid a broader effort by the Trump administration to overhaul government operations and cut federal expenditures. Earlier this month, the White House implemented a temporary freeze on federal grants and loans as part of an ongoing spending review. Additionally, several executive orders signed by President Trump have targeted programs related to diversity, equity, and inclusion (DEI), gender ideology, and the Green New Deal.

Musk, who reportedly contributed over $270 million to Trump’s election campaign, has been at the forefront of these budgetary reforms, signaling a major shift in the federal workforce and spending priorities.

With the resignation deadline approaching, all eyes are on Washington to see how many federal employees will take the unprecedented offer and how it will reshape the federal government in the months ahead.