HHS Employees Offered $25K Incentive to Voluntarily Separate

The Department of Health and Human Services (HHS) is offering employees up to a whopping $25,000 to voluntarily separate from their roles as part of a federal workforce downsizing initiative under President Donald Trump’s administration. This move seems to be a strategic effort to trim the government payrolls without resorting to more disruptive methods.

In an email sent last Friday, HHS—headed by Secretary Robert F. Kennedy, Jr.—announced it had secured approval from the Office of Personnel Management (OPM) to offer these Voluntary Separation Incentive Payments. According to OPM, these payments are targeted at employees in surplus positions or those with skills no longer considered essential to their department.

The incentive is broad in scope, being available to most workers across HHS, including major branches like 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). Even employees eligible for optional or early retirement can take advantage of this offer.

"By allowing employees to volunteer to leave the Government, agencies can minimize or avoid involuntary separations through the use of costly and disruptive reductions in force," OPM stated on its website. It’s a kinder, gentler approach to downsizing—at least on paper.

Currently, about 80,000 people are employed by HHS in various capacities, according to the Equal Employment Opportunity Commission. The forms for this incentive must be submitted to local HR offices by Friday at 5 p.m., with the program officially launching this Monday.

HHS is no small player in the federal spending game. It is the second-costliest federal agency, eating up a hefty 20.6% of America’s Fiscal Year 2025 budget, amounting to a staggering $2.4 trillion, according to USASpending.gov. Most of this budget is directed toward the Centers for Medicare and Medicaid Services. The only agency with a larger financial footprint is the Department of the Treasury.

This isn’t the first time the government has tried to sweeten the pot to encourage federal employees to walk away. In fact, some agencies, like the CIA, have reportedly made similar offers across their entire workforce. It’s like a corporate buyout, but with taxpayer dollars.