OPM Pauses Relocation Push: What Federal Employees Should Do Now

In February, the Office of Personnel Management (OPM) ordered many remote employees living more than 50 miles from an OPM worksite to accept a management-directed reassignment (MDR) or risk termination. Relocation packages were offered, and decisions were due by March 7. This week, however, an internal memo announced a pause. The December 2025 wave of moves is off the table—for now. But pause does not mean cancellation. OPM states that “new efforts” are underway.

The reason is largely financial. Relocating about 250 employees was projected to cost $42 million—over $160,000 per person when factoring in moving, storage, travel, home sale or lease break assistance, and the relocation tax gross-up. New Director Scott Kupor is reassessing the plan, exploring options such as placing employees in existing federal facilities near their current residences.

If You Accepted an MDR

You are not required to report to a new duty station this December. Request written confirmation from HR that your report date is on hold. Ask whether OPM will attempt to place you in a nearby federal facility instead of requiring a long-distance move. If you already signed relocation authorizations, clarify whether they will be extended or reissued in the future.

If You Declined or Face Removal

The pause may affect timing, but it does not automatically cancel removal actions. Retain every notice you receive. If a proposal or decision letter arrives, act quickly—deadlines are short. Do not sign a “deferred resignation” or early-out agreement without first consulting counsel.

If You Have an Exemption

Exemptions—based on medical needs, caregiving, disabled veteran status, or unique skillsets—are subject to review and may be temporary. Update your documentation now so you’re prepared if OPM re-examines or narrows categories in the coming months.

Money Matters and Locality Pay

A duty-station change can alter your locality pay. If you are eventually relocated, know what reimbursements apply. Covered costs may include travel for dependents, moving household goods, and relocation income tax allowances (RITA). Keep receipts and maintain records—you may need them to claim benefits later.

The Bigger Picture

While OPM says there is no sweeping plan to relocate the entire federal workforce out of D.C., other agencies, such as USDA, are actively moving employees into regional hubs. Your exposure depends on your agency and position, not just OPM’s actions.

Your Playbook

• Save the pause memo.

• Get HR confirmation of your current status.

• Ask about placement in local facilities.

• Refresh your exemption files.

• Never resign under pressure without advice.

Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.