A federal judge has ruled that President Donald Trump’s Deferred Resignation Program—a buyout initiative for federal employees—can continue despite legal challenges from labor unions. The decision marks a win for the administration, which has framed the program as part of its broader effort to streamline the federal workforce.
Court Ruling Dismisses Union Challenge
U.S. District Judge George O’Toole, based in Boston, ruled that labor unions lack the legal standing to challenge the program. The American Federation of Government Employees (AFGE) and other labor groups had argued that the program pressures federal employees into making rushed decisions about their careers.
However, O’Toole stated that the unions themselves were not directly affected by the program, noting that concerns such as loss of membership and reputational harm were not enough to justify legal action. He also pointed out that challenges to the program should be addressed through appropriate federal personnel agencies rather than the courts.
Reactions from Both Sides
The White House welcomed the decision, with Press Secretary Karoline Leavitt emphasizing that the ruling exposes the unions’ legal strategy as weak.
“The court dissolved the injunction due to a lack of standing. This goes to show that lawfare will not ultimately prevail over the will of 77 million Americans who supported President Trump and his priorities,” Leavitt said.
On the other hand, the AFGE remained critical of the program. National President Everett Kelley argued that federal employees were being forced to make life-altering decisions without enough information.
“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,” Kelley said in a statement.
The AFGE stated that its legal team is reviewing options for further action.
Impact on Federal Employees
Shortly after taking office, Trump’s administration offered roughly 2 million full-time federal employees the option to resign in exchange for eight months of full pay and benefits. So far, approximately 75,000 employees have accepted the offer, according to the U.S. Office of Personnel Management.
In addition, Trump has warned that those who decline the buyout will be required to return to in-person work starting Feb. 6. He also suggested that future workforce reductions may impact those who choose to remain in their positions.
What’s Next?
With the court’s ruling in favor of the administration, the buyout program is set to continue. However, legal battles could still arise if unions find alternative ways to challenge the initiative. Meanwhile, federal employees face a difficult choice: take the eight-month payout or remain in their roles with uncertain job security in the future.
