A U.S. judge ruled in favor of the Trump administration’s federal worker buyout program, allowing it to move forward after a six-day legal delay. The Deferred Resignation Program, now closed to new applicants, aims to reduce the federal workforce by tens of thousands.
U.S. District Judge George O’Toole dismissed a lawsuit from labor unions, stating they lacked standing. Everett Kelly, president of the American Federation of Government Employees, called the ruling a setback but vowed to continue the fight.
The buyout, part of Trump’s push to downsize a 2.3 million-strong workforce, has already seen 65,000 employees sign up. Agencies have been instructed to prepare for staff cuts of up to 70%. Critics warn the buyout offer—salaries and benefits until October—may not be guaranteed beyond March due to funding uncertainties.
Elon Musk, heading the new Department of Government Efficiency, is leading efforts to cut $1 trillion from the federal budget. His team has identified 15 agencies for layoffs and has already dismantled two. Republican budget experts argue the move is ideological rather than fiscally necessary.
While Trump resists cutting senior benefits, his allies plan a budget that lowers taxes and increases security spending, likely adding trillions to the national debt. Meanwhile, unions have filed another lawsuit to block potential mass firings.
Also read: Musk and Trump Allies Attack Federal Judges Over Rulings
