The deferred resignation program (DRP) that was kicked off in January 2025 with the “fork-in-road” offers resulted in around 140,000 people exiting the federal workforce. The salaries that were paid to people not actively working until either the September 30th deadline or the December 31st deadline cost the government $6.7 billion altogether. Now, a rule has been finalized that makes it easier for agencies to issue their own offers similar to the DRP going forward.
DRP 2.0? Official Regulation Now in Effect
While there have been some VERA/VSIP offers in 2026 as well as some staff cuts due to a RIF (Reduction in Force), there have not been any DRP offers made this year, at least not publicly. Proposed back in June, a rule was finalized in mid-October that laid the groundwork for agencies to independently make such offers in the future.
Essentially, agency leaders would be able to offer up to 12 weeks of paid leave that the rule defines as extended period of administrative leave. The timeframe would start with the delivery of a RIF notice to an employee and would commence on the final separation date. Encouraging a voluntary separation would alleviate agencies from having to deal with an appeal to the Merit Systems Protection Board (MSPB), which could happen if they involuntarily terminate a worker due to poor performance or misconduct.
If you’re worried about going long stretches without a paycheck, you should check out a short-term disability policy.
What is Administrative Leave?
Administrative leave has typically been reserved for situations where an employee is being investigated for misconduct that could lead to their firing. It can also be used for when an employee needs time off to vote, donate blood, or skip work due to an emergency closure. The rule states that the 10 day annual limit for administrative leave only applies to such situations and not the extended administrative leave used for offers similar to the DRP.
Early Unexpected Separation from Federal Employment
Employees of the federal government have enjoyed strong job security and excellent retirement benefits for decades. For many, it’s the main appeal for taking a government position. However, agency leaders can now bypass the usual routes for forcing an employee to separate by enticing them with paid leave. This does not require approval from the Voluntary Early Retirement Authority (VERA) or an approved Voluntary Early Separation Incentive Payment (VSIP). It also doesn’t require the agency to prove misconduct or poor performance. Although some critics argued DRP offers should not be allowed, the rule itself notes that nowhere in the laws that created VERA and RIF policies does it state that they are the “exclusive means for facilitating voluntary separations.”
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