By Nate Raymond and Karen Freifeld
BOSTON/WASHINGTON (Reuters) – Following a federal judge’s ruling, tens of thousands of U.S. civil servants have been given the green light to opt for a buyout from the Trump administration. Approximately 75,000 workers have already enrolled in the buyout program, representing 3% of the civilian workforce. The administration has committed to paying their salaries through October even if they are not working, although unions have expressed skepticism about the offer.
Federal worker unions had contested the downsizing initiative and managed to delay the program by six days while awaiting a decision from U.S. District Judge George O’Toole in Boston. However, Judge O’Toole ultimately determined that the unions lacked legal standing to challenge the program in court and suggested that the issue should be addressed through other channels before resorting to litigation.
The Office of Personnel Management has stated that the buyout program is now closed to new applicants, asserting that the Deferred Resignation Program is both legal and beneficial for federal employees. Despite this ruling, unions involved in the dispute have not disclosed whether they plan to appeal the judge’s decision or pursue alternative courses of action.
In response to the administration’s efforts to reduce the civilian workforce, President of the American Federation of Government Employees Everett Kelly emphasized that the fight for dignity and fairness for public servants continues despite the setback caused by the recent ruling.
President Trump has taken various measures to trim the 2.3 million-strong civilian workforce, which he has criticized as inefficient and biased against him. In addition to the buyout program, government agencies have been instructed to brace for extensive job cuts, with reports indicating that staff reductions of up to 70% may be implemented in some departments.
While the administration has vowed to cover salaries and benefits until October, uncertainty looms as current spending laws are set to expire on March 14. The Department of Justice has characterized the buyout initiative as a humane solution for employees disillusioned by Trump’s workforce reduction strategies.
The legality and fairness of the program have been contested by federal employee unions, who argue that the buyout is arbitrarily applied and breaches laws governing agency expenditures. They have raised concerns that the workforce could be depleted haphazardly, leading to disruptions in essential government services.
In a separate development, five unions have filed a lawsuit to prevent a potential mass dismissal of workers who refuse the buyout offer. As Trump’s administration aims to achieve significant budget cuts, scrutiny and resistance from unions and other stakeholders persist in response to the rapid restructuring of the government.
Accounting for less than 5% of the total, the buyout could result in annual savings under $10 billion if it reduces headcount by less than 3%. Recent federal data reveals that about 6% of the workforce exits each year through resignations or retirements. President Trump has directed federal agencies to collaborate with Elon Musk’s team in pinpointing employees for potential layoffs and identifying functions that could be entirely eliminated.
A report by CNN on Wednesday disclosed that the Department of Education and the Small Business Administration had initiated terminations of probationary employees, according to sources within the federal workforce and unions. The DOE and SBA have not promptly responded to Reuters’ request for comments.
Musk’s team, currently concentrating on 15 agencies, has already dissolved two of them. One agency was dedicated to assisting the world’s vulnerable populations, while the other was responsible for shielding Americans from deceitful lenders. Certain Republican fiscal experts argue that these actions reflect conservative principles more than a genuine endeavor to save taxpayer funds.
President Trump himself has categorically dismissed the possibility of cutting popular retirement and health benefits for seniors, accounting for 36% of federal expenditure and projected to consume a larger portion of the budget with an aging population. Meanwhile, Trump’s Republican allies in Congress are formulating a budget proposal aimed at reducing taxes and bolstering security spending, a move that independent analysts warn could significantly increase the national debt.
(Reporting by Nate Raymond in Boston, Karen Friefeld in New York, and Tim Reid, Andy Sullivan, Steve Holland, Kanishka Singh, and David Shepardson in Washington; Writing by Andy Sullivan; Editing by Gerry Doyle and Stephen Coates)
