A U.S. judge in Boston has given the green light for the Trump administration to proceed with a buyout program aimed at reducing the federal workforce. The decision allows tens of thousands of government employees to opt into the program, potentially ushering many off federal payrolls as part of a sweeping effort to downsize the U.S. civil service.
U.S. District Judge George O’Toole ruled that the labor unions opposing the plan did not have standing to bring the lawsuit, clearing the way for the administration to swiftly close the program to new applicants. The Office of Personnel Management stated, “There is no longer any doubt: the Deferred Resignation Program was both legal and a valuable option for federal employees.”
Labor unions expressed disappointment with the ruling. Everett Kelly, president of the American Federation of Government Employees—which represents 800,000 federal workers—said, “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.” The unions have not indicated whether they will appeal the decision or pursue other legal avenues.
The buyout is one of several strategies the Trump administration is employing to reduce the civilian workforce of approximately 2.3 million people. Agencies have been instructed to prepare for significant staff cuts, with some facing reductions of up to 70%. As of last Friday, about 65,000 federal employees—around 3% of the total civilian workforce—had signed up for the buyouts.
Under the program, participating employees are promised their regular salaries and benefits until October without being required to work. However, there is uncertainty beyond that point due to current spending laws expiring in March, raising concerns about future funding.
Critics argue that the buyout program is “stunningly arbitrary” and may violate laws that prevent agencies from exceeding congressionally approved budgets. Lawyers from the Department of Justice defended the initiative as a “humane off-ramp” for employees frustrated by broader plans to reduce the workforce and limit remote work options.
Billionaire Elon Musk has been appointed to lead the newly created Department of Government Efficiency. His team is tasked with cutting $1 trillion from the federal budget, focusing on identifying redundancies and potential layoffs. While some agencies have already been dismantled, critics suggest the efforts reflect ideological goals rather than genuine fiscal responsibility.
Amid these changes, President Trump has ruled out cuts to popular retirement and health benefits, which currently account for 36% of federal spending. Meanwhile, Republican allies in Congress are preparing a budget plan that includes tax cuts and increased security spending—moves that independent experts warn could add trillions of dollars to the national debt.
