US judge maintains block on Trump’s federal employee buyout plan
3 Min Read
The buyout initiative is part of Trump’s broader strategy to downsize the federal bureaucracy and curtail its influence.
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Vehicles wait to enter the Navy Yard as security checks credentials on February 10, 2025, in Washington, DC. (Getty Images via AFP)
A US judge maintained his injunction against President Donald Trump’s federal employee buyout plan on Monday while he deliberates on whether to extend it further.
US District Judge George O'Toole in Boston ruled to temporarily prevent the Trump administration from implementing the buyout plan, marking a short-term victory for labor unions that have filed lawsuits to halt it permanently.
More than two million federal civilian employees had until midnight to accept the proposal, though it remains uncertain when O'Toole will rule on the unions' request.
The buyout initiative is part of Trump’s broader strategy to downsize the federal bureaucracy and curtail its influence. Since returning to the presidency on January 20, Trump has accused federal employees of undermining his agenda during his first term from 2017 to 2021.
Unions have urged their members to reject the buyout offer, arguing that the administration cannot be trusted to uphold its terms. Nevertheless, as of Friday, approximately 65,000 federal employees had signed up, according to a White House official.
Under the plan, employees would continue receiving their salaries and benefits until October without being required to work, but this arrangement is not guaranteed as current spending laws expire on March 14, and there is no assurance that funding for salaries will continue beyond that date.
During a court hearing, US Justice Department attorney Eric Hamilton defended the buyout plan as a "humane off-ramp" for employees frustrated by Trump’s push to shrink the federal workforce and limit remote work options.
However, union attorney Elena Goldstein criticized the plan as haphazardly executed, with little regard for its potential disruption to agencies such as the Department of Veterans Affairs.
"They failed to consider the continued functioning of government," Goldstein argued.
The administration initially set a deadline for last Thursday, but O'Toole—who was appointed by former Democratic President Bill Clinton—extended it to allow further consideration of the case.
Trump has tasked Tesla and SpaceX CEO Elon Musk, the world's richest person, with overseeing the federal workforce reduction through his Department of Government Efficiency, an entity that does not officially exist as a government agency.
Musk’s involvement has sparked alarm among federal employees, leading to public protests and a surge in calls to lawmakers from constituents concerned about the extent of access Musk’s team has to sensitive government data, including federal payments and personal details of employees.
Musk’s associates have taken senior roles in key government agencies, while the billionaire has advocated for dismantling others, including USAID, the US agency allegedly responsible for humanitarian and development assistance.
Read more: Musk says shutting down USAID in government cost-cutting drive
