In a historic move, approximately 100,000 federal employees are reportedly expected to resign from their positions, representing the biggest mass resignation of government employees in U.S. history.
Mass Federal Resignations To Hit Agencies Amid Funding Deadline
The mass resignations, scheduled for Tuesday, are part of a program initiated by President Donald Trump at the beginning of his second term, reported Newsweek. The resignations coincide with a crucial funding deadline for Congress, with the White House instructing federal agencies to prepare for extensive layoffs if a deal is not reached.
Office of Personnel Management did not immediately respond to Benzinga’s request for comment.
The exit of these employees is likely to significantly affect government operations, potentially disrupting services from agencies like the Department of Veterans Affairs and the Social Security Administration. This sudden rise in unemployment could also impact the broader economy as many individuals turn to the private sector for employment.
This move is consistent with the Trump administration’s continued push to cut federal bureaucracy and simplify government services. leading to the creation of the Department of Government Efficiency (DOGE), formerly headed by Tesla CEO Elon Musk until his departure in May. The administration has additionally imposed hiring freezes and carried out large-scale layoffs.
DRP Resignations May Spike Unemployment, Impact Politics
The upcoming resignations fall under the Deferred Resignation Program (DRP), which provides federal employees with a resignation package that continues their salary through the end of September, the report said. The program is projected to cost $14.8 billion, covering full pay and benefits for 200,000 workers who may remain on administrative leave for up to eight months.
Scott Lucas, an international politics professor at University College Dublin, said that the resignations would affect the unemployment rate in the United States and, as a result, have a political impact. “…the spike will look bad for the Trump administration,” he added.
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Federal Workforce Upheaval Sparks Frustration Amid Shake-Ups
The mass resignations come amid a series of significant changes within the federal workforce. Earlier in September, thousands of federal workers were reassigned to new roles they had little or no training for, following waves of firings and resignations since President Donald Trump took office in January.
These changes have led to inefficient work and growing frustration among employees. The looming government shutdown, as warned by Vice President JD Vance, could exacerbate the situation. Despite this, a recent market analysis suggests that the long-term bull market is not in jeopardy, and any resulting downturn should be viewed as a buying opportunity.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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