Michigan AG urges federal employees to ‘read the fine print’ on Trump-Musk resignation scheme

Michigan’s top law enforcement official is urging federal employees to think twice before quitting their jobs under the Trump administration’s new “deferred resignation” program. 

MICHIGAN—A dozen state attorneys general, including Michigan Attorney General Dana Nessel, have joined labor leaders in warning federal employees about a misleading resignation program rolled out by the Trump administration in coordination with billionaire Elon Musk.

The so-called “deferred resignation” offer from the Office of Personnel Management—which arrived via mass email to more than 2 million federal employees on Jan. 28—invites them to resign by Feb. 6, in exchange for paid administrative leave through Sept. 30. 

But in a statement, Nessel said that Trump’s latest scheme, crafted with Musk’s involvement as a newly appointed “special government employee,” raises serious concerns about workers’ rights and financial security. She urged federal employees to proceed with extreme caution, emphasizing those who accept the offer may not actually receive the promised pay and benefits.

“I take my role to protect Michigan consumers very seriously, and that includes the tens of thousands of federal workers who call this state home,” Nessel said in a statement released on Tuesday afternoon. “For those considering the buyout, read the fine print before signing and be cautious, as certain benefits may not be guaranteed. Employees who are represented by a union should work with their labor representatives before entering into any contract changes.” 

Here’s the Deal:

Michigan is home to about 29,000 federal employees, but not all of them have received an offer to quit their jobs. Workers in immigration enforcement, national security, the US Postal Service, and the military are excluded from the program.

The controversial offer—which some have dubbed a “buyout”—clearly states that employees who voluntarily resign by Thursday will be exempt from in-person work requirements and paid through Sept. 30. 

Trump and Musk have framed the program as an effort to rapidly shrink the federal government. 

But unions representing federal employees—including the National Federation of Federal Employees (NFFE)—have urged their members to steer clear of the deal, citing serious concerns that the Trump administration could renege on its promise to pay workers who quit.

In a statement, NFFE President Randy Ewin said that employees who accept Trump’s deal would forfeit their due process rights and “may forfeit any pay beyond their acceptance date.”

“This maneuver is intended to panic civil servants into accepting what seems like a sweet deal but is probably a scam,” Ewin said. “The offer is a scare tactic designed to pressure workers into quitting while promising under an illegal and unenforceable agreement to pay them.”

The American Federation of Government Employees (AFGE)—the largest federal employees’ union—has issued multiple warnings to members, making clear that accepting the offer comes with major risks. 

Among their chief concerns:

• The resignation offer is “riddled with inconsistencies and uncertainties.”
• There is no guidance on how employees can confirm their eligibility. 
• No guarantee exists that an employee’s resignation will be accepted.
• There is no assurance that promised benefits will be honored.
• Employees who sign on may lose any legal recourse if the government fails to deliver.
• The program is vulnerable to legal challenges that could alter its terms.
• Workers who opt in will be at the mercy of federal administrators—some of whom could terminate their pay and benefits after they resign. 
• Many federal agencies may not have the funding to uphold these agreements, especially as current appropriations for most civilian agencies are set to expire on March 14.

AFGE President Everett Kelley called the resignation scheme a political purge instead of a buyout—warnring that the goal is to push out career public servants who aren’t loyal to Trump.

“Purging the federal government of dedicated career federal employees will have vast, unintended consequences that will cause chaos for the Americans who depend on a functioning federal government,” Kelley said in a statement. “Between the flurry of anti-worker executive orders and policies, it is clear that the Trump administration’s goal is to turn the federal government into a toxic environment where workers cannot stay even if they want to.”

A similar warning was also issued by attorneys general of Arizona, California, Connecticut, Delaware, Hawaii, Maryland, Minnesota, New Jersey, New York, Vermont, and Washington.

The Bigger Picture 

Trump built his political career around promises to disrupt Washington, and his second term appears poised to go even further. But mass federal resignations could unleash chaos. 

The federal government employs more than 3 million people, accounting for nearly 1.9% of the nation’s workforce. Even a small percentage of those employees accepting Trump’s offer could send shockwaves through the economy—causing disruptions to critical services. 

Front-line health workers in the Veterans Affairs Department, loan processors for homebuyers and small businesses, and defense contractors working on military projects could all leave en masse. Food inspectors, scientists who test water supplies, and federal air traffic controllers could also be among those walking away. 

Ewin, the NFFE president, said the consequences of the program could be catastrophic.

“This administration and its controlling interests, like Elon Musk, count on civil servants to leave or submit to political pressure and corruption,” he said. “I encourage every federal employee to stay steadfast in their commitment to serve their country in a civilian capacity. The United States needs you more than ever within its ranks to fight against corruption and political exploitation.”

The Associated Press contributed to this report. 

READ MORE: Michigan priest has license revoked by church after mimicking Musk

Don’t miss Michigan’s biggest stories—follow The ‘Gander on X.