Washington: A U.S. judge ruled in favor of the Trump administration on Wednesday, allowing it to proceed with a federal employee buyout program aimed at reducing the size of the U.S. civil service. The decision, issued by U.S. District Judge George O’Toole in Boston, lifted a six-day legal freeze on the initiative, paving the way for its swift implementation.
The administration confirmed that the program is now closed to new applicants.
“There is no longer any doubt: the Deferred Resignation Program was both legal and a valuable option for federal employees,” the Office of Personnel Management said in a statement.
Unions Vow to Continue Their Fight
Labor unions that filed the lawsuit to block the program have not yet disclosed whether they will appeal the ruling or explore other legal avenues. Judge O’Toole determined that the unions lacked the standing to challenge the buyout since they were not directly affected by it.
“Today’s ruling is a setback in the fight for dignity and fairness for public servants. But it’s not the end of that fight,” said Everett Kelly, president of the American Federation of Government Employees, which represents approximately 800,000 federal workers.
Trump’s Broader Plan to Shrink Government Workforce
The buyout initiative is part of a larger effort by former President Donald Trump to downsize the federal workforce, which he has frequently criticized as inefficient and biased against him. In addition to offering buyouts, the administration has instructed government agencies to prepare for sweeping job cuts, with some agencies reportedly being directed to reduce staff by up to 70%.
As of Friday, around 65,000 federal employees—roughly 3% of the civilian workforce—had accepted buyouts, according to a White House official.
Unions have advised their members against accepting the buyout, expressing concerns that the administration may not honor its financial commitments. The program promises to continue paying employees their regular salaries and benefits until October without requiring them to work. However, with current spending laws set to expire on March 14, there is uncertainty over whether funding will be sustained beyond that date.
Legal Challenges and Government Restructuring
The U.S. Department of Justice defended the buyout program in court, describing it as a “humane off-ramp” for federal employees dissatisfied with the administration’s broader restructuring efforts, which include significant cuts to remote work options.
Unions had challenged the program as “stunningly arbitrary” and alleged that it violated laws restricting agencies from exceeding congressional budget allocations. Judge O’Toole ruled that disputes involving federal employees must first go through administrative processes before reaching the courts.
The ruling comes as the Trump administration faces multiple legal battles over its efforts to reshape the federal government. In a separate lawsuit filed on Wednesday, five unions sued to block what they described as a potential mass termination of employees who refuse to accept buyouts.
Musk’s Role in Federal Workforce Overhaul
Trump has tasked billionaire Elon Musk with leading the newly established Department of Government Efficiency, which is reviewing personnel and payroll records in an effort to cut $1 trillion from the federal budget. While federal worker salaries account for less than 5% of total government spending, Musk’s team has been working with agencies to identify layoffs and eliminate certain functions altogether.
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So far, 15 agencies have been scrutinized, with two already dismantled—one focused on global humanitarian aid and another that regulated financial practices to protect consumers. Some Republican budget experts argue that these cuts align more with conservative ideology than with a genuine effort to reduce government spending.
Budgetary Implications and Political Divide
Despite these efforts, Trump has ruled out cuts to Social Security and Medicare, which account for 36% of federal spending and are expected to rise as the population ages. Meanwhile, congressional Republicans are preparing a budget plan that would lower taxes and increase security spending—proposals that independent analysts say could significantly expand the national debt.
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With the Trump administration pressing forward with workforce reductions and budgetary overhauls, the legal and political battles over the future of the U.S. civil service are far from over.
