Judge rules Trump can downsize federal government with worker buyouts

Donald Trump’s buyout program for federal employees can proceed, a federal judge ruled on Wednesday. The move paves a path forward for the 65,000 government workers who have volunteered to resign under the president’s plan to shrink the federal workforce.

The US district judge George O’Toole Jr in Boston – who halted the so-called “Fork in the Road” program last week, before its 6 February deadline, to assess whether it was legal – found that the unions who had sued on behalf of their employees did not have legal standing to challenge the resignation offer because it would not directly affect them. O’Toole did not rule on the legality of the program itself.

It was a significant legal victory for the Republican president after a string of courtroom setbacks.

Karoline Leavitt, the White House press secretary, told the Associated Press: “This goes to show that lawfare will not ultimately prevail over the will of 77 million Americans who supported President Trump and his priorities.”

Everett Kelly, president of the American Federation of Government Employees, which represents 800,000 federal workers, told Reuters: “Today’s ruling is a setback in the fight for dignity and fairness for public servants. But it’s not the end of that fight.”

In a statement, Kelley added that the union’s lawyers were evaluating the decision and assessing next steps.

The union maintains that requiring US citizens to make a decision about “whether to uproot their families and leave their careers for what amounts to an unfunded IOU from Elon Musk” is illegal.

The deferred resignation program has been spearheaded by Elon Musk, the world’s richest man, who is serving as Trump’s top adviser for reducing federal spending. Under the plan, employees can stop working and get paid until 30 September.

Officials have been told to prepare staff cuts of up to 70% at some agencies, sources told Reuters. The 65,000 federal employees who have signed up for the buyouts, according to a White House official, equal about 3% of the total civilian workforce.

Labor unions argued the plan is illegal and asked for O’Toole to keep it on hold and prevent the office of personnel management, or OPM, from soliciting more workers to sign up. The administration said the program is now closed to new applicants.

The resignation offer is one of several tactics Trump and Musk have taken to gut the federal workforce in recent weeks, alongside massive cuts to foreign aid and the Department of Education. After Musk spent $250m to re-elect Trump, the president named the tech billionaire head of a newly minted, so-called “department of government efficiency”, designed to slash federal spending.