HHS employees offered $25,000 as ‘incentive to voluntarily separate’
The Health and Human Services Department (HHS) is taking steps to downsize its workforce under President Donald Trump’s administration. In an effort to streamline operations and reduce costs, HHS employees have been offered up to $25,000 to voluntarily leave the agency.
In an email sent out on Friday, Secretary Robert F. Kennedy, Jr. announced that the HHS has been given authorization from the Office of Personnel Management (OPM) to offer Voluntary Separation Incentive Payments. This program allows employees to receive a lump-sum payment of up to $25,000 as an incentive to leave the agency.
The OPM’s website states that this incentive is targeted towards employees in surplus positions or those whose skills are no longer needed within the department. The payment is available to most employees within the HHS, including those working at the Centers for Disease Control and Prevention (CDC), Centers for Medicare & Medicaid Services (CMS), Food and Drug Administration (FDA), and the National Institutes of Health (NIH).
Employees also have the option to take the payment if they are eligible for optional or early retirement. By offering these incentives, agencies like the HHS can minimize or avoid involuntary separations through costly reductions in force.
The HHS currently employs around 80,000 people, making it the second-costliest federal agency. With a budget of $2.4 trillion for Fiscal Year 2025, the HHS accounts for 20.6% of America’s total budget. Most of this funding is allocated to the Centers for Medicaid and Medicare Services.
The offer for Voluntary Separation Incentive Payments will be available starting on Monday, and employees must submit their forms to local HR offices by Friday at 5 p.m. This initiative is part of the HHS’s efforts to streamline operations and reduce costs in line with President Trump’s plans to shrink the federal workforce.
In conclusion, the HHS’s offer of up to $25,000 for employees to voluntarily leave the agency is a strategic move to downsize the workforce and reduce costs. By incentivizing voluntary separations, the HHS aims to minimize the need for involuntary layoffs and disruptive reductions in force. This initiative reflects the agency’s commitment to optimizing operations and aligning with the administration’s goal of streamlining the federal workforce.
