A U.S. judge has temporarily halted President Donald Trump’s buyout plan for federal employees while considering a longer-term block. U.S. District Judge George O’Toole’s decision grants a temporary win to labor unions opposing the move.
Over 2 million federal workers faced a deadline to accept the offer, which promised salaries and benefits until October. However, unions warned the administration may not honor the deal, and funding beyond March 14 remains uncertain.
The Trump administration, seeking to downsize the federal workforce, tasked Tesla and SpaceX CEO Elon Musk with overseeing the effort through a non-existent “Department of Government Efficiency.” Musk’s involvement has sparked protests and concerns over access to sensitive government data.
Unions and Democratic attorneys general have filed lawsuits against Trump’s sweeping federal restructuring. A union representing Consumer Finance Protection Bureau workers is challenging budget director Russell Vought’s directive to shut down the independent agency. Meanwhile, Democrats from 22 states sued over deep cuts to federal research funding, securing a temporary block.
A judge also halted Trump’s bid to dismantle USAID, rejecting the administration’s claim of unchecked presidential power over foreign affairs. Another ruling paused efforts to freeze federal grants and loans, while a separate decision blocked Musk’s team from accessing Treasury systems handling trillions in payments.
Trump insists Musk acts only with presidential approval, recently signing an executive order to eliminate the Federal Executive Institute, which trains government leaders. The legal battles over his federal overhaul continue.
Also read: USAID Freeze Stalls Life-Saving Programs Worldwide
