BOSTON/WASHINGTON, Feb 12 (Reuters) – Tens of thousands of U.S. civil servants have been approved for a voluntary buyout under the Trump administration’s unprecedented downsizing initiative following a federal judge’s ruling on Wednesday.
Approximately 75,000 federal workers—equivalent to 3% of the civilian workforce—have opted for the buyout, according to a spokesperson from the U.S. Office of Personnel Management (OPM). The administration has committed to covering their salaries through October without requiring them to work, though unions have raised concerns over the reliability of this promise.
Legal Battle and Judicial Ruling
Federal employee unions had filed a lawsuit to halt the program, delaying its implementation for six days while U.S. District Judge George O’Toole in Boston reviewed the case. However, the judge ruled that the unions lacked legal standing to challenge the program, stating that the matter should be addressed through other forums before reaching the courts.
Following the ruling, the administration confirmed that the program is now closed to new applicants.
"There is no longer any doubt: the Deferred Resignation Program was both legal and a valuable option for federal employees," OPM stated.
Unions have yet to confirm whether they will appeal the ruling or explore alternative legal avenues.
"Today's ruling is a setback in the fight for dignity and fairness for public servants, but it is not the end of that fight," said Everett Kelly, president of the American Federation of Government Employees, which represents 800,000 federal workers.
Broader Workforce Reduction Efforts
The buyout initiative is one of several measures the Trump administration has implemented to reduce the 2.3 million-strong civilian workforce, which the former president has criticized as inefficient and biased against him. Government agencies have been directed to prepare for deep staff reductions, with some departments reportedly facing cuts of up to 70%.
Officials have warned that Trump’s offer to continue paying salaries and benefits until October is contingent on current spending laws, which expire on March 14. Without additional congressional approval, continued funding remains uncertain.
According to the U.S. Department of Justice, the buyout serves as a "humane off-ramp" for employees dissatisfied with Trump’s broader restructuring efforts, which include limiting remote work options.
Unions have countered that the program is "stunningly arbitrary" and may violate federal laws that restrict unauthorized government spending. They argue that the buyout, which excludes key personnel such as border guards and air traffic controllers, could disrupt essential government functions.
Lawsuits and Policy Implications
The legal battle over Trump’s restructuring efforts continues, with unions and Democratic attorneys general filing multiple lawsuits against his administration’s policies. While some legal challenges have resulted in early victories, the administration remains committed to reshaping the federal workforce.
On Wednesday, five unions launched a new lawsuit aimed at preventing what they describe as a mass firing of hundreds of thousands of federal employees unwilling to accept the buyout.
Elon Musk’s Role in Government Efficiency Efforts
Trump has appointed billionaire Elon Musk to lead the newly created Department of Government Efficiency, tasked with streamlining federal operations and identifying $1 trillion in budget cuts from the $6.75 trillion federal budget.
Although civilian worker salaries account for less than 5% of total federal spending, the buyout initiative is expected to yield less than $10 billion in annual savings. Federal data indicates that approximately 6% of the workforce resigns or retires annually under normal conditions.
Musk’s team has identified 15 agencies for potential downsizing and has already dismantled two, including one providing humanitarian aid and another focused on consumer financial protection. Critics argue that these actions reflect conservative ideological priorities rather than genuine fiscal responsibility.
While Trump has ruled out cuts to Social Security and Medicare—programs that constitute 36% of federal expenditures and are projected to grow as the population ages—his Republican allies in Congress are advancing a budget plan that proposes tax cuts and increased security spending. Independent analysts warn that such measures could significantly expand the national debt.
The ongoing restructuring of the federal government underscores the broader ideological divide over the role of public institutions, with far-reaching implications for the nation's workforce and fiscal policy.
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