A federal judge ruled Wednesday that the Trump administration can move forward with its federal worker buyout program, dealing a blow to unions attempting to block the initiative. The decision paves the way for the administration to accelerate efforts to downsize the U.S. government.
U.S. District Judge George O’Toole in Boston lifted a previous order that had temporarily halted the program at the request of unions representing over 800,000 federal employees. He determined the unions lacked legal standing to challenge the buyout plan.
The American Federation of Government Employees and other unions had argued that the administration’s “deferred resignation” offer, extended to more than two million federal civilian employees, was unlawful.
“The unions do not have the required direct stake in the Fork directive, but are challenging a policy that affects others, specifically executive branch employees,” O’Toole, a Clinton appointee, wrote in his ruling. “This is not sufficient.”
The Office of Personnel Management (OPM), which announced the program in a Jan. 28 email titled “Fork in the Road,” informed employees this week that it intends to close the program to new entrants as soon as legally permissible.
As of Friday, approximately 65,000 federal workers had signed up for the buyouts, according to a White House official. The initiative is part of the Trump administration’s broader plan to implement widespread job cuts across federal agencies.
The White House did not immediately comment on the ruling, and union attorneys have yet to indicate whether they will appeal.
Trump, who began his second term on Jan. 20, has appointed Elon Musk as a “special government employee” to lead a new Department of Government Efficiency. The department aims to cut federal spending and restructure the 2.2 million-strong workforce, potentially leading to mass layoffs.
Democrats and other critics have accused Musk—who leads Tesla and SpaceX—of improperly overhauling the government. Some federal employees have staged protests against his role in the initiative.
Last month, OPM sent an email to nearly all federal employees, offering them the option to resign immediately while retaining full pay and benefits until Sept. 30. Workers could remain on the payroll without being required to report in person or perform job duties. Employees needed only to reply with the word “resign” to accept the offer.
The structure of the email closely resembled a message Musk sent to Twitter employees after acquiring the platform, now known as X, in 2022.
The U.S. Department of Justice defended the initiative as a “humane off-ramp” for workers dissatisfied with Trump’s plans to reduce the government workforce and limit remote work.
The buyout applies to roughly two million federal civilian employees, excluding those in immigration, national security, and the U.S. Postal Service.
As the deadline approached, the administration reiterated warnings that most federal agencies would be downsized—seen by employees as pressure to accept the offer.
Unions had challenged the directive in court, arguing it was “stunningly arbitrary” and violated the Antideficiency Act, which prohibits federal agencies from exceeding congressional budget allocations.
They also warned that allowing widespread resignations without considering their impact on agency functions could compromise government operations.
O’Toole had previously delayed the initial Feb. 6 deadline for employees to resign, extending it to Monday before placing it on hold pending further review. However, his latest ruling allows the program to proceed, though unions may still seek relief through the appeals process.