OPM runs up $42 million relocation bill amid return-to-office push

OPM is preparing to spend more than $40 million relocating roughly 250 employees as part of its return-to-office mandate, according to documents obtained by Federal News Network. That amounts to about $166,000 per employee—more than the annual salary of most federal workers, Pew Research Center reports.

The costly relocations follow a February ultimatum requiring remote employees living more than fifty miles from an OPM site to move or face termination. Roughly 550 employees—approximately 20 percent of OPM’s workforce—received the notice. After early retirement offers and other incentives, nearly 90% requested relocation assistance, or about 440..

OPM then approved exemptions for 142 employees based on medical, caregiving, or hardship reasons and reassigned thirteen others to offices closer to home. These adjustments brought the relocation cost estimate down to $41.9 million.

Employees accepting relocation must report to their new offices by September 30. Those who decline may face adverse actions but are eligible for severance and career transition support. Some exemptions are time-limited, and OPM warned that future reductions in force (RIFs) could still affect employees granted exemptions.

The policy aligns with President Donald Trump’s January directive mandating a full-time return to federal offices, part of a broader government-wide shift away from remote work.