Judge Reverses Ruling on Trump’s ‘Buyout’ Offer to Fed Workers
A federal judge has lifted the temporary restraining order on the Trump administration’s initiative to downsize the federal workforce through a voluntary buyout offer.
The ruling, issued Wednesday by Massachusetts District Judge George O’Toole, clears the way for the administration’s plan to move forward.
It comes despite ongoing legal challenges from labor unions representing federal employees.
The American Federation of Government Employees (AFGE) and other unions filed a lawsuit last week, seeking to block the initiative before its Feb. 6 deadline.
Judge O’Toole, an appointee of former President Bill Clinton, however, determined that the unions lacked standing to challenge the directive in court.
“Aggrieved employees can bring claims through the administrative process,” O’Toole wrote in his decision, effectively dismissing the unions’ attempt to halt the initiative.
The buyout plan is a key component of a broader cost-cutting effort led by billionaire Elon Musk and his Department of Government Efficiency (DOGE) team.
The initiative aims to reduce federal spending by $2 trillion, with the buyout program expected to account for an estimated $100 billion in annual savings.
The administration has struggled to meet its participation targets, however, the Daily Mail reported.
As of Wednesday, roughly 75,000 federal workers had accepted the offer—less than four percent of the two million eligible employees.
Daily Mail noted that the administration had projected that between five and ten percent of the federal workforce would participate in the program.
With the court ruling in place, federal agencies swiftly moved forward with the next phase of the initiative.
Workers reported receiving emails Wednesday evening stating that the buyout program was officially closed.
The message specified that any resignations submitted after the 7:20 p.m. ET deadline would not be accepted.
The Office of Personnel Management (OPM) first introduced the buyout offer on Jan. 28, presenting federal employees with a choice: voluntarily resign and remain on the payroll with full benefits until Sept. 30 or risk future uncertainty regarding their employment status.
Workers who opted in were exempt from newly enforced in-person work requirements, which mandate a five-day office return for those remaining in their roles.
Acceptance of the offer was as simple as sending an email with “Resign” in the subject line from a government account, TTOA previously reported.
The administration’s messaging also contained a stark warning—employees who chose to stay could not be guaranteed job security.
OPM stated it was unable to provide “full assurance” that positions or entire agencies would not be eliminated in the future, leaving workers with a difficult decision.
The buyout initiative has sparked significant controversy, with federal employees and Democratic lawmakers questioning both its legality and intent.
Daily Mail noted that the AFGE and other unions argue that the plan is an effort to replace career public servants with political loyalists.
Their lawsuit claims that the program amounts to an ultimatum—resign now with a payout or risk losing your job without compensation later.
The outlet further reported that AFGE National President Everett Kelley condemned Wednesday’s court ruling, calling it a “setback” but vowing to continue the fight.
“Importantly, this decision did not address the underlying lawfulness of the program,” Kelley stated.
“We continue to maintain it is illegal to force American citizens who have dedicated their careers to public service to make a decision, in a few short days, without adequate information, about whether to uproot their families and leave their careers for what amounts to an unfunded IOU from Elon Musk.”
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