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FMA Washington Report: April 11, 2025
Deferred Resignation Windows Open at DOD, Treasury, and Others for a Limited Time

Several federal agencies have reopened windows for feds to accept a “deferred resignation” before those agencies take reductions in force (RIFs). The Department of Defense and Department of Treasury are among those who have offered a “second and final” chance to accept a deal which puts those who take it on paid administrative leave through the end of Fiscal Year 2025. Employees have until April 14 to accept the deal.

The offer applies to employees at the Internal Revenue Service (IRS), which will begin its first wave of RIFs soon. Employees in offices or functions deemed mission-critical may be excluded from accepting this deferred resignation offer, sent via email.

“If you choose to remain in your current position, we thank you for your renewed focus on serving the American people to the best of your abilities and look forward to working together as part of an improved and streamlined federal workforce,” the Treasury wrote in its email. “At this time, we cannot give you full assurance regarding which positions will remain — or where they will be located — after Treasury’s restructuring, but should your position be eliminated you will be afforded the protections in place for separations under such circumstances.”

The Treasury Department expects to eliminate up to 50 percent of IRS enforcement personnel and cut staffing by 20 percent across other Treasury functions as part of its agency reorganization plan in response to President Trump’s executive order.

Feds at the Department of Defense also have until April 14 to accept a deferred resignation offer. DOD intends to eliminate up to 60,000 positions as part of its reorganization.

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