Judge Lifts Pause on Trump Administration’s Federal Buyout Offer

This afternoon, a federal judge in Boston ruled that the Trump administration could move forward with a buyout offer aimed at most federal workers. He concluded the unions who had sued to block the offer lacked standing to challenge it.

U.S. District Judge George O’Toole in Massachusetts lifted a previous temporary order that blocked the buyout while he considered arguments by unions challenging it. 

The judge, an appointee of former President Bill Clinton, said in a five-page opinion that the unions lacked proper legal standing to challenge the buyout program because they were not directly impacted by it. He also said aggrieved employees could first bring any claims through an administrative review process.

A little less than 3% of the federal workforce had accepted the offer, which was fewer than the administration had hoped for.

More than 60,000 workers had acccepted the buyouts as of late last week, representing about 2.6% of the federal workforce, which is less than White House projections for 5% to 10% to take part.

The Trump administration didn’t waste any time in announcing the offer was closed. Naturally, the unions aren’t happy with the outcome.

The deferred resignation program was closed as of 7 p.m. Wednesday, said McLaurine Pinover, spokesperson for the Office of Personnel Management. “There is no longer any doubt,” she said in a statement. “The Deferred Resignation Program was both legal and a valuable option for federal employees.”…

In a statement Wednesday evening, AFGE National President Everett Kelley called the ruling a “setback in the fight for dignity and fairness for public servants.”

The union’s lawyers, he said, are evaluating next steps.

“Importantly, this decision did not address the underlying lawfulness of the program. 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,” the statement continued.

If you missed the backstory, the Trump administration made the offer to about 2.3 million federal workers two weeks ago with an email titled “A Fork in the Road.” Employees were told they could return to work in person (as opposed to working from home) or resign and receive 8 months of severance. A group of unions had sued the administration claiming the offer itself was illegal.

…the deferred resignation allegedly breaks numerous laws, a Feb. 4 lawsuit filed by several federal employee unions alleges. The plaintiffs in that suit are asking a court to block the government’s offer, which they describe as “arbitrary, capricious” and in violation of the Administrative Procedure Act, a 1946 law governing how federal agencies implement regulations…

…the unions’ lawsuit claims OPM may not have the financial authority to make that offer. For instance, the agency’s email states it will pay workers who agree to resign by Feb. 6 through Sept. 30, but funding for most federal agencies expires on March 14.

Last Thursday, Boston Judge George O’Toole Jr. issued an injunction just a few hours before the deadline to accept the buyout offer was set to expire. He said that, at a minimum, the offer would be on hold until Monday of this week. Then on Monday he extended that freeze, a delay the unions supported.

A federal judge in Boston on Monday continued his pause of the Trump administration’s unprecedented plan to get millions of federal workers to resign until he responds “to the issues presented.”

…After a hearing Monday, he said the pause would continue until he rules on a preliminary injunction.

Elena Goldstein, an attorney for the plaintiffs, said, “We ask for more weeks … while this court considers the merits.”

This is a win for the Trump administration. CNN says it’s their first win in more than a dozen lawsuits filed against the administration.

NEW: Significant win for Trump Admin, as it struggles to successfully defend its policies in court….a Clinton appointed federal judge in Boston says federal worker buyout program can proceed, for now. I joined @wolfblitzer @CNNSitRoom with more. pic.twitter.com/Zitcmenugo

— Paula Reid (@PaulaReidCNN) February 12, 2025