NASA Kennedy Memo On DRP, RIFs, etc.

Keith’s note: the following memo updated 9 July 2025 is circulating around the KSC community and has official management answers to questions about DRP, RIFs etc. Full memo below.

NASA is not currently in a Reduction in Force (RIF) posture and is employing various means to reduce involuntary separations, including offering a Deferred Resignation Program, Voluntary Separation Incentive Payments, and Voluntary Early Retirement Authority.

NASAs Workforce Optimization Plan will be guided by legal, regulatory, and stakeholder engagement processes. More information on Federal RIF policy can be found here. Some questions are still being routed for response and will be posted at a later date, so please check back. Submissions have been edited for brevity and clarity.

• As many people are trying to make informed decisions about voluntary separations, will you share the number of employees in the agency and center who have accepted the voluntary separation offers?

As of Tuesday July 8 the center has 199 deferred resignations and the agency has 1,944 including those in MSOs (Mission Serving Organizations). We expect the number to rise daily through July 25. Employees with questions regarding the current number of employees opting into the DRP should speak to their organization’s senior leadership.

• Will employees who accept the Deferred Resignation Program (DRP), Voluntary Separation Incentive Program (VSIP), or Voluntary Early Retirement Authority (VERA) be eligible for severance pay?

Severance pay is not offered for voluntary separations such as Deferred Resignation Program, Voluntary Early Retirement Authority, and Voluntary Separation Incentive Program. It may only be offered to eligible employees in the case of an involuntary separation.

• How is the VSIP dispersed if I am also accepted into the DRP?

Employees who accept the DRP and are approved for VSIP will be placed on administrative leave through Jan. 9, 2026 at the latest. Following the employee’s separation, a lump sum payment of the VSIP value will be distributed within one to two pay periods.

• Are employees who opted into OPM’s DRP eligible for VERA and/or VSIP?

Employees who accepted OPM’s DRP offer are not eligible for VSIP and are only eligible for the VERA that was offered during the signup period for the OPM DRP.

• Can I delay my departure from NASA beyond Jan. 9?

In rare circumstances NASA may approve a delay to administrative leave due to critical need. These exceptions would start no later than April 1, 2026 with the employee separating by Sept. 30, 2026. Exceptions are expected to be few and must have concurrence from a Mission Directorate Structured Review

• When can we expect the reduction in workforce to happen?

NASA is not currently in a RIF posture and is employing every tool at the agency’s disposal to reduce involuntary separations, including offering a Deferred Resignation Program, Voluntary Separation Incentive Payment, and Voluntary Early Retirement Authority. NASA’s Workforce Optimization Plan will be guided by legal, regulatory and stakeholder engagement processes. More information on federal policy can be found here: https://www.opm.gov/policy-data-oversight/workforce-restructuring/reductions-in-force-rif/

• Do you know by program and organization the number of people by which the agency needs to reduce?

NNASA leaders plan to select and begin implementing a restructuring plan by the end of the fiscal year, but the specific scope of that plan will reflect what the agency knows at that time, particularly in reference to the skills and capacity the agency retains after the DRP window has closed.

• What happens if the number of employees applying for the VSIP exceed the number of available buyouts? When will employees be notified if approved or disapproved?

OPM has authorized a number of voluntary separation incentives for the NASA workforce including VSIP which is limited to a number of positions. VSIP allocations are approved on a first-come, first-reviewed basis, and once the available funding has been exhausted, no additional requests will be granted.

• Do Pathways interns qualify for DRP?

Pathways students in a pay status (full-time and part-time) are eligible to accept the DRP incentive.

• The DRP’s Final Separation Agreement document provides a blank field for the end date instead the actual end date (Jan. 9, 2026). Is there more than one possible end date?

The Final Separation Agreement allows employees and supervisors to identify the employee’s last day of full duty, after which he or she will offboard from the agency and remain on administrative leave through Jan. 9, 2026.

• What is the contractor-to-civil servant ratio?

There are 19,684 individuals (civil servants, contractors, tenants, commercial partner employees, etc.) badged for KSC and 2,091 of those individuals are civil servants.

• The agency’s budget technical supplement indicates a 25% cut to FTEs for FY26 – how many people need to take the DRP/VISIP/VERA in order for KSC to avoid a RIF? How many agencywide are needed to avoid a RIF?

The final budget allocation for FY26 will determine the agencys workforce reshaping; however, NASA is focused on reducing redundancy, increasing efficiency, and following the Presidents directive to reduce the size of the federal government.

• NASA’s technical supplement indicates an expected reduction of 510 FTEs and NASA has stated it hopes to reach that target through voluntary separations. Do employees who accepted OPM’s initial DRP offer count toward those reductions?

All employees who accepted OPMs DRP offer will count toward the total agency reduction in civil servants, as they departed the agency during FY25.

• What is the last possible date for the DRP to be effective?

The window for the DRP opened Monday June 9, and will remain open through Friday July 25. Employees who apply and are accepted to the program may transition out of work as early as seven to 14 days after approval and remain on paid administrative leave as late as Jan. 9, 2026. No applications to the DRP, VSIP, or VERA incentives will be approved after 11:59 pm on July 25.

• Are employees who accept the DRP restricted from returning to federal service like those who accept a VSIP?

There is no restriction for employees to return to federal service after accepting the DRP however, employees may not charge administrative leave under the DRP while employed by another federal agency.

• If there is a reduction in force (RIF) action after the DRP/VERA/VSIP period is it likely to occur prior to the end of the fiscal year?

NASA is not currently in a RIF posture and is employing every tool at the agencys disposal to reduce involuntary separations. To align with the President’s goals for the agency, NASA plans to select and begin implementing a restructuring plan by the end of the fiscal year reflecting what we know at that time, particularly the skills and capacity we retain when the DRP window closes in late July.

• If the DRP (Deferred Resignation Program) results in more separations than necessary to meet final budget appropriations and NASA needs to re-hire, will employees who accepted the DRP be eligible to apply?

There is no restriction for employees to return to federal service after accepting the DRP however, employees may not charge administrative leave under the DRP while employed by another federal agency.

• Will there be opportunities for some employees to be reassigned before the DRP deadline, and is it possible they would be reassigned to another center?

Officials in charge currently have authority to judiciously approve reassignments based on mission needs.

• If I am not eligible to retire or take VERA what retirement benefits could I lose if I take the DRP?

If an employee participates in the Deferred Resignation Program, their separation is considered a resignation and not a retirement. The NSSC has offered retirement and separation webinars that cover benefits. Sign up for a live webinar or watch a pre-recorded information session here: https://nasa.sharepoint.com/sites/nssc/SitePages/Retirement-and-Separation-Webinars.aspx

• What is the purpose of the OWBPA Supplemental Information document that was included in the DRP email to civil servants?

The OWBPA supplement was provided in accordance with the Age Discrimination in Employment Act which requires agencies to provide employees over the age of 40 with data regarding those who are eligible and those who are exempt from the Deferred Resignation Program.

• If an employee is enrolled in the Student Loan Repayment Program and accepts the DRP , will they still be eligible for the loan repayment benefit?

The Federal Student Loan Repayment Program requires individuals to be employed by a federal agency. Once a DRP participant separates from service he or she is no longer a federal employee and therefore is not eligible for the repayment benefit. However, consistent with law, the agency agrees to waive any debt owed by employee to the agency pursuant to a recruitment incentive, student loan repayment, or other service agreement.

• When will NASA and KSC begin hiring to fill vacant positions?

The federal government remains in a hiring freeze through Oct. 15, 2025. Pending any extension of the freeze, NASA will be able to make hiring decisions based on mission, budget, and any criteria set out by the Office of Personnel Management (OPM) and the Office of Management and Budget (OMB).

• What’s the future of the Pathways program?

The Pathways Internship Program continues to exist across the federal government. Currently NASA does not plan to put out agency announcements in 2025, but as the agency receives budget updates and hiring approval in 2026 it may begin recruiting for Pathways again.

• Are there any options for employees who are eligible for VERA just outside the Jan. 9 deadline for example, reaching 25 years of service in February?

NASA’s VERA authority is for those who meet all eligibility criteria (or become eligible on or before Jan. 9, 2026). Employees who are not eligible until after Jan. 9, 2026 would not meet this criteria.

• If a GS-14 or 15 (Branch Chief/Division Chief/Lead) takes the VSIP would the high-grade position be eliminated or otherwise not able to be back filled?

When an employee takes the VSIP the organization must either restructure the position (which involves modifying the duties, responsibilities or reporting structure) or abolish/eliminate the position.

• NASA’s technical supplement indicates a 25% Full Time Equivalents (FTE) cut from KSC for FY 26. Do you know how many people need to voluntary separate from KSC and the agency to avoid involuntary separations?

The NASA Technical Supplement outlines a reduction of 510 FTEs from Kennedy and 5,538 FTEs from the agency to align with the Presidents Budget Request. The final budget allocation for FY26 will determine the agency’s workforce reshaping; however, NASA is focused on reducing redundancy, increasing efficiency, and following the President’s directive to reduce the size of the federal government.

• Do you expect contractors to be impacted?

The President’s Budget Request reduces NASA’s budget by roughly 25% which impacts every part of how the agency operates. As nearly 85% of the NASA budget funds contracts, any reduction in budget would likewise affect the services procured to support the agency. While we know there will be impacts, how much, which services, and where will be determined by the final budget appropriation.

• As many people are trying to make informed decisions about voluntary separations, will you share the number of employees in the agency and center who have accepted the voluntary separation offers?

As of Wednesday, June 25 the center has 157 deferred resignations and the agency had 1465, including those in MSOs (Mission Serving Organizations), and we expect the number to rise daily through July 25. Employees with questions regarding the current number of employees opting into the DRP should speak to their organizations senior leadership.

• Will agency leadership release the agency reorganization and consolidation plan before the DRP opt-in deadline on July 25?

There is not currently a projected date for the release of the agencys reorganization plan. In the agencys June 25 town hall, Acting Administrator Janet Petro shared her goal to select and begin implementing a restructuring plan by the end of the fiscal year reflecting what the agency knows at that time particularly the skills and capacity the agency retains when the DRP window closes in late July.

• If a civil servant leaves NASA without retiring, are they able to work in industry while on administrative leave, including at other aerospace companies?

Many employees who opt into the DRP are able to start outside employment during the administrative leave period, potentially with aerospace companies, though ethics laws may create restrictions on what they are able to do in their new roles during the leave period or after civil service ends. Ethics advisors are available to current, departing, and retired civil servants, and employees are encouraged to discuss any employment options with the Chief Counsels office prior to departing the agency or accepting an employment offer. Employees can contact [email protected] for personalized ethics advice. Ethics webinars are also being scheduled regularly, so please check the KSC Daily News for additional information.

• What specific roles and programs do you expect to see most impacted by the restructuring? And does the center plan to reallocate, retrain, or assist employees in finding other areas, other options?

The FY 2026 budget request fortifies funding for human exploration while reducing funding for science and mission support. At Kennedy, this would indicate a reduction in institutional support functions, including how services are provided. After the DRP window closes in July, the center will assess available skills as well as gaps in mission support, and the workforce will be structured and trained according to organizational and mission needs.

• If NASA does not reach the targeted workforce reduction through voluntary separations, is there a timeline for when involuntary separations could be initiated?

In the agencys June 25 town hall Acting Administrator Janet Petro shared her goal to select and begin implementing a restructuring plan by the end of the fiscal year reflecting what the agency knows at that time, particularly the skills and capacity the agency retains when the DRP window closes in late July. NASA’s enacted budget will determine the urgency with which the agency implements additional workforce reshaping measures.

• How would you expect to see term employees treated versus permanent civil servant during a RIF?

Temporary and term employees are typically not covered by RIF regulations, can be separated without competition or formal RIF procedures, and are often the first to be released during workforce downsizing.

• If the agency does not reach its targeted reductions through the NASA DRP, would another DRP window open?

The agency expects to identify and move forward with its Workforce Optimization Plan at the end of the fiscal year, and there are currently no plans to offer additional voluntary separation incentives after this DRP window closes.