NASA has launched a series of voluntary staff reduction programs in response to proposed budget cuts by the Trump administration for the 2026 fiscal year. In internal memos sent to employees on June 9, the agency outlined options including early retirement, deferred resignation, and voluntary separation incentives.
Workforce reduction targets
The proposed federal budget calls for a dramatic 24% cut to NASA’s funding, aiming to bring down the agency’s workforce from 17,391 to 11,853 employees — a 32% reduction. Although the budget is still under Congressional review and not yet finalised, NASA is moving ahead with preemptive measures to slim down its staffing levels.
Employee exit options
NASA has asked employees to declare their interest in the voluntary programs by July 25. Those opting for the Deferred Resignation Program may cease work soon after applying but will continue to receive pay until January 9, 2026. Participants in the early retirement and voluntary separation incentive programs will typically begin administrative leave within one to two weeks of signing their agreements.
While most employees are expected to formally exit the agency by early January, critical personnel may be allowed to remain until April 1 or, in some cases, as late as September 30, 2026. NASA’s decision mirrors broader federal efforts to downsize government staffing. Around 75,000 federal workers across agencies have already accepted deferred resignation offers. Additionally, NASA’s Jet Propulsion Laboratory (JPL) has recently ended its remote work policy, prompting many of its 5,500 staff to either return to on-site roles or consider resigning. The final fate of NASA’s workforce will ultimately depend on Congress’s decision regarding the proposed 2026 budget.
Earlier this year, NASA sacked an employee of Caribbean origin in compliance with Donald Trump’s executive order to “terminate” all persons employed under the Diversity, Equity, and Inclusion initiative. The decision came weeks after Rose Ferreira’s post about the removal of her feature from the NASA website went viral on Threads.