By Tim Reid and Nate Raymond
WASHINGTON (Reuters) – A U.S. judge is set to decide the outcome of President Donald Trump’s buyout proposal for two million federal workers as the administration pushes forward with plans to restructure government agencies and reduce the federal workforce.
On Monday, U.S. District Judge George O’Toole in Boston will hear arguments in a lawsuit filed by federal workers’ unions challenging the legality of the Trump administration’s offer of “deferred resignation” to government civilian employees. The unions argue that the scheme is unauthorized since Congress has not approved funding for it.
President Trump has appointed Elon Musk, CEO of Tesla and SpaceX, to lead the effort to streamline the workforce through the newly established Department of Government Efficiency (DOGE). This move has caused concern in Washington and led to public demonstrations and a surge of calls to Congress from worried citizens regarding the access Musk’s team has to sensitive government data.
Musk’s team has taken on key roles in various government agencies, while advocating for the dismantling of agencies such as USAID and the Consumer Finance Protection Bureau. Critics, including opposition Democrats and federal employee unions, are alarmed by the broad authority granted to Musk, who reportedly answers directly to President Trump. Trump maintains that Musk’s actions are sanctioned by him.
Despite a temporary halt imposed by Judge O’Toole on the deadline for employees to accept Trump’s buyout plan, thousands of government workers have already opted for the offer. While unions advise against accepting the deal, citing doubts about the administration’s commitment to honoring it, the number of acceptances continues to rise.
The judge may decide to further delay the program, reject it entirely, or allow it to proceed. Meanwhile, concerns grow among employees of agencies like the Consumer Finance Protection Bureau, where the acting director has ordered a halt to work activities and announced a temporary closure.
Amid these developments, a labor union representing CFPB workers has filed a lawsuit challenging the director’s actions, arguing that they infringe upon Congress’s authority to define the agency’s mission. The CFPB, which oversees consumer financial products, has long been a target of criticism from conservatives who view it as governmental overreach.
On X, Elon Musk shared a post on his social media platform saying “CFPB RIP.” Following this, President Trump commented that he anticipates Musk will uncover billions of dollars of wasteful spending within the military once he directs the entrepreneur’s attention towards the Pentagon. The actions taken by both Trump and Musk are resulting in a multitude of new legal battles emerging on an almost daily basis.
A move to diminish the impact of USAID has been partially halted due to a recent court ruling, while Trump’s endeavor to freeze trillions of dollars in federal loans, grants, and other financial aid has also been temporarily suspended in a separate legal case.
Furthermore, on Saturday, a judge issued a temporary restraining order preventing DOGE from accessing government systems used for processing payments totaling trillions of dollars at the Treasury Department. Reporting from Washington by Tim Reid, with additional contributions from Nate Raymond, Andy Sullivan, and David Shepardson. Edited by Ross Colvin, Andrea Ricci, and Richard Chang.
