HHS Offers $25,000 Buyout as Part of Workforce Reduction
March 9, 2025 | By Olivia Rinaldi
The U.S. Department of Health and Human Services (HHS) has announced a voluntary separation incentive aimed at reducing its workforce. Employees received a departmental email on Friday, informing them of the option to resign in exchange for a payment of $25,000.
According to a source familiar with the matter, the response deadline for employees considering the buyout is set for March 14.
Background on Workforce Reductions
This move is part of a broader initiative under the Trump administration to streamline the federal workforce and minimize government expenses. Specifically, these reductions are being managed through the Department of Government Efficiency (DOGE), which is headed by entrepreneur Elon Musk.
In a related development, federal agencies reported over 62,200 job reductions in February, marking a significant spike in layoffs, the highest since July 2020. Additionally, similar buyouts were proposed to employees of the Social Security Administration, offering between $15,000 to $25,000 for voluntary departures.
Scope of HHS and Implications
The HHS is a vast organization with over 80,000 employees, overseeing crucial health agencies like the Food and Drug Administration (FDA), the Centers for Disease Control and Prevention (CDC), and the National Institutes of Health (NIH). Recently, a large number of probationary workers—those employed for less than one year—were informed of pending layoffs.
The implications of these workforce reductions could be significant, particularly as HHS and its new Secretary, Robert F. Kennedy Jr., are tasked with addressing urgent health issues such as the bird flu outbreak and a measles epidemic that has already resulted in fatalities.
Historical Context
Upon President Trump’s assumption of office in January, an option for deferred resignations was presented to over two million federal workers, allowing them to continue receiving pay until September without reporting to work. Approximately 75,000 employees took advantage of this offer, which has since faced legal challenges.