Massive Exit Package Offered to U.S. Health Service Employees

HHS launches a $25,000 buyout program for employees to voluntarily leave their positions as part of the Trump administration’s federal workforce reduction plan.

Key Takeaways

HHS has offered approximately 80,000 employees a $25,000 incentive to voluntarily resign, with applications due by March 14.
The buyout program is part of broader Trump administration efforts to reduce the federal workforce, aligned with initiatives led by Elon Musk.
HHS is the second-largest budget item in federal spending at $2.4 trillion, overseeing crucial agencies like CDC, FDA, NIH, and CMS.
The voluntary separation program aims to avoid more disruptive involuntary layoffs while still meeting workforce reduction goals.

Voluntary Separation Program Details

The Department of Health and Human Services has launched a Voluntary Separation Incentive Payment program offering eligible employees up to $25,000 to leave their positions. An unsigned email was distributed to approximately 80,000 HHS employees detailing the offer, which requires interested staff to submit their forms by Friday at 5 p.m. The initiative, authorized by the Office of Personnel Management, specifically targets employees in surplus positions or those with skills deemed no longer necessary for current government operations.

The buyout program extends to employees across multiple HHS agencies, including those at the Centers for Disease Control and Prevention, Centers for Medicare and Medicaid Services, Food and Drug Administration, and National Institutes of Health. Employees eligible for optional or early retirement can also take advantage of the payment. The rapid timeline gives workers just days to consider the offer, which became available on Monday.

🚨Update: HHS offers all 80,000 employees $25k to leave jobs — offer expires on Friday! pic.twitter.com/kyXnzavG1N

— US Homeland Security News (@defense_civil25) March 9, 2025

Trump Administration Workforce Reduction Strategy

This voluntary separation program aligns with President Donald Trump’s broader goals to significantly reduce the federal workforce. The initiative is part of the administration’s strategy to cut government spending and streamline operations. HHS accounts for approximately 20.6% of the U.S. budget for Fiscal Year 2025, with projected resources of $2.4 trillion, making it the second-costliest agency behind only the Department of the Treasury.

“If they can cut, it’s better. If they don’t cut, then Elon will do the cutting,” President Trump stated, referring to Elon Musk’s role in the Department of Government Efficiency, which is focused on identifying areas for workforce reductions and agency restructuring.

Kennedy’s Vision for HHS

HHS Secretary Robert F. Kennedy Jr. has reportedly compiled a list of employees he wants removed from the department, particularly focusing on those he believes are aligned with pharmaceutical industry interests. This approach reflects his longstanding skepticism of the pharmaceutical industry and certain public health policies, including vaccine requirements.

However, experts have raised concerns about how staff reductions might affect Kennedy’s ability to implement his policy priorities. The department oversees critical public health functions, from Medicare and Medicaid to food safety and drug approvals, requiring significant expertise and personnel resources.

Potential Impacts on Public Health Operations

Health policy experts have expressed concerns about how these staffing reductions could affect the department’s ability to fulfill its public health mission. The CDC has already experienced workforce cuts, and further reductions across HHS agencies could impact everything from healthcare access to pandemic preparedness. Critics argue that institutional knowledge and expertise will be lost with departing employees.

This is not the first time the Trump administration has offered buyouts to federal employees. A similar offer was made in January to approximately 2 million federal workers, with about 75,000 accepting. The current initiative aims to minimize more disruptive involuntary separations while still advancing the administration’s workforce reduction goals.