Congressman Langworthy Introduces Legislation to Modernize Federal Workforce Buyout Program
Washington, D.C. –February 2, 2026…Congressman Langworthy today announced he has introduced the Federal Workforce Early Separation Incentives Act, legislation designed to modernize an outdated federal workforce volunteer buyout program by increasing the financial incentives in a responsible manner. This cost-saving legislation is expected to marked up by the House Oversight Committee, of which Congressman Langworthy is a member, on Wednesday.
“Taxpayers deserve a federal government that is efficient, accountable, and appropriately sized,” said Congressman Langworthy. “By ending the 30-year old cap, and instead tying the retirement incentive to earned income, we will make the VSIP more fair and potentially appealing. This legislation brings a common-sense update to a program that has been frozen in time, giving agencies a better option to reduce costs while treating federal employees fairly.”
The bill would update the Voluntary Separation Incentive Payment (VSIP) program, first established in the 1990s, which allows federal agencies to offer buyouts to employees who voluntarily leave government service. While VSIP was intended to reduce payroll costs and avoid disruptive reductions-in-force, the program’s $25,000 cap has not been updated in more than 30 years and has lost its effectiveness due to inflation and rising salaries.
The Federal Workforce Early Separation Incentives Act removes the outdated statutory cap and allows agencies to offer buyouts of up to six months’ pay. By tying the incentive to an employee’s salary, the program would automatically adjust over time and once again serve as a meaningful option for workforce downsizing. While the updated incentives may result in modest upfront costs, they are expected to produce significant long-term savings by reducing future payroll and retirement obligations.
“This bill provides a respectful route to honor federal workers, while being fiscally responsible to shrink the cost of the federal workforce without resorting to layoffs or disruptions.” Congressman Langworthy added. “It gives future administrations another tool to right size government while delivering real savings for taxpayers long term.”
The bill would also benefit residents of New York’s 23rd District by reducing the long-term tax burden of the federal bureaucracy and ensuring that federal employees who choose to depart during downsizing efforts are treated fairly.
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