NASA Layoffs: Is Trump's budget cut approved by Congress? NASA asks employees to opt for early retirement, deferred resignation, or voluntary separation. Here's last date and terms of departure

Economic Times

a day ago

NASA has announced new staff reduction programs in response to a proposed 24% budget cut. Employees may opt for early retirement, deferred resignation, or incentive-based separation. The programs aim to reduce the workforce from 17,391 to 11,853. Affected staff must decide by July 25, with most leaving by January 2026.
Signage stands outside the Mary W. Jackson headquarters of the National Aeronautics and Space Administration in Washington, Tuesday, May 6, 2025. (AP Photo/Gene J. Puskar)
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New Programs for Staff Exit
Reasons Behind Staff Reductions
Deadline for Employee Decisions
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Terms of Departure
Similar Changes Across Other Agencies
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NASA has introduced a range of new programs aimed at reducing its workforce. These changes follow proposed budget cuts by the Trump administration for the 2026 fiscal year. The programs are voluntary and give employees multiple options for leaving the agency.NASA sent memos to employees on June 9, announcing early retirement, deferred resignation, and voluntary separation incentive options. These programs are part of a larger workforce reduction effort. The goal is to reduce the number of NASA employees significantly by 2026.The Trump administration has proposed a 24% cut to NASA's overall budget for 2026. This proposal aims to lower the employee count from 17,391 to 11,853, a 32% drop. The proposed budget is still under review by Congress and not yet finalized.NASA has asked employees to decide by July 25 if they want to participate in the new staff reduction options. Those who opt into the Deferred Resignation Program will likely stop working soon afterward but will continue to receive pay until January 9, 2026.According to the agency, employees who sign the separation agreement will start administrative leave within one to two weeks. Most participants are expected to complete their employment by January 9, 2026. Some critical staff may receive approval to delay their departure until April 1 or as late as September 30, 2026.NASA's new programs follow similar moves at other government agencies. Around 75,000 federal workers have already taken deferred resignation offers. Changes have also occurred at NASA's Jet Propulsion Laboratory (JPL), which recently ended remote work. Most of the 5,500 staff at JPL are now required to return to the office or resign.NASA is responding to proposed budget cuts for 2026. These cuts aim to reduce spending and the number of employees across the agency.Most employees who accept the offer will stop working by January 9, 2026. Some may stay until April or September 2026, based on need.