Deferred Resignations Will Proceed Even With Shutdown, OPM Says

Sept. 30, 2025, 7:11 PM UTC

Federal employees who accepted a resignation incentive will be unemployed starting tomorrow, even if there is a government shutdown, according to the Office of Personnel Management.

The threat of a lapse in government funding raised questions about the fate of the roughly 154,000 employees who took the deferred resignation offer—namely, whether agencies would have the resources to finalize their departures. OPM spokeswoman McLaurine Pinover said workers who took the incentive “will depart as planned” when their employment—and the fiscal year—ends Wednesday.

The exodus of workers could save taxpayers more than $20 billion a year, according to the OPM. Employees were offered up to eight months of paid leave in exchange for quitting or retiring by the end of September. Their resignations are final as of the start of the new fiscal year on Oct. 1.

Some agencies, including the US Department of Labor and the Internal Revenue Service, are rehiring certain employees who took the incentive. A DOL spokeswoman said they’re limited to “mission critical” roles.


To contact the reporter on this story: Ian Kullgren in Washington at ikullgren@bloombergindustry.com

To contact the editor responsible for this story: Alex Ruoff at aruoff@bloombergindustry.com

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.