North Dakota Offers Voluntary Buyout Program for State Employees

Incentive aims to reduce government costs amid budget pressures

Published on Feb. 12, 2026

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The state of North Dakota is offering a voluntary separation incentive program to its employees, providing three months' salary and benefits to those who agree to quit. The program, administered by the North Dakota Office of Management and Budget, is the third such offering this decade as the state anticipates lower revenue in the coming years.

Why it matters

North Dakota, like many states, is facing budget challenges and looking for ways to reduce government spending. Voluntary buyout programs allow the state to downsize its workforce in a more gradual and consensual manner, rather than having to resort to layoffs which can be more disruptive.

The details

Under the terms of the program, state employees who accept the buyout offer will receive three months' salary and benefits. However, their department must prove that letting the employee go will result in ongoing cost savings for the state. The program is being offered in anticipation of lower state revenue projections over the next several years.

  • The North Dakota Office of Management and Budget is offering the voluntary separation incentive program.
  • This is the third time such a program has been offered this decade.

The players

North Dakota Office of Management and Budget

The state agency administering the voluntary separation incentive program for North Dakota government employees.

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What’s next

The state will review applications from interested employees and approve those that demonstrate ongoing cost savings for the department.

The takeaway

North Dakota's voluntary buyout program is a pragmatic approach to reducing government costs and headcount in the face of budget pressures, allowing the state to downsize its workforce through consensual departures rather than disruptive layoffs.