US Government Shutdown: Massive Resignations To Save Govt $28 Billion Annually? Here's What Trump Officials Say

(MENAFN- Live Mint) US government shutdown: As the US government teeters on the brink of a shutdown, with the POTUS and Democrats unable to finalise a deal, the Trump administration is set to witness what could become the largest mass resignation in US history. On Tuesday, over 100,000 federal workers are set to formally quit as part of the latest wave of its deferred resignation program.

According to a report by The Guardian, the total resignations are set to cost the Trump administration $14.8bn. Despite such a staggering figure, Trump officials have reportedly claimed that the outlay is 'worth it' and will save the government $28bn annually.

The official resignations will reportedly begin on Tuesday for employees who have opted into a deferred exit program that kept them on the government payroll through September.

The resignations come amid the looming threat of US government shutdown on October 1 due to a funding impasse between Republicans and Democrats.

'No additional cost to govt'

A spokesperson for the White House claimed there was“no additional cost to the government” as employees would have received their salaries regardless of the program.“In fact, this is the largest and most effective workforce reduction plan in history and will save the government $28bn annually,” they added, reported The Guardian.

The 'deferred resignations' of employees – with 200,000 workers paid their full salary and benefits while on administrative leave for up to eight months – will cost the US government $14.8 billion, as per a Senate Democrats' report that was released in June.

What Trump officials say?

Trump officials have claimed that the outlay is worth it.

The Office of Personnel Management argued that, while the program involves one-time costs, it would ultimately reduce long-term federal spending. It also criticised job protections of federal civil servants, claiming the government should have a“modern, at-will employment framework like most employers”.

US govt shutdown

With only hours remaining before the midnight deadline, the lack of agreement on spending could lead to the shutdown, which will halt numerous government services and delaying pay for federal employees.

The White House has warned it may fire employees instead of placing them on furlough, and Democratic leaders are facing mounting pressure from the party's progressive win to take a firm stand against President Donald Trump, according to Bloomberg.

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