Donald Trump
Donald Trump

Federal Judge Reviews Trump Administration’s Controversial ‘Deferred Resignation’ Buyout Amid Legal Challenges

A federal judge is set to review the Trump administration’s controversial “deferred resignation” buyout program for government workers. Judge George O’Toole Jr. issued a nationwide injunction last Thursday, halting the program just before the deadline for acceptance. Over 60,000 federal employees had reportedly taken the buyout when the ruling was made.

Despite this pause, the U.S. Office of Personnel Management (OPM) extended the deadline to Monday at 11:59 p.m. ET, stating that the program was neither blocked nor canceled.

Unions Challenge the Buyout Plan

Employee unions have strongly opposed the program, arguing in court filings that it constitutes an “unlawful ultimatum.” They described it as an arbitrary attempt to push federal workers into mass resignations without due process. The unions are seeking a temporary restraining order from the court while they pursue further legal action. They contend that the program forces employees into making hasty and irreversible decisions, raising concerns about worker rights and job security.

Donald Trump
Donald Trump

The Trump administration maintains that the buyout program is essential to President Trump’s broader efforts to reform the federal workforce. Government lawyers argue that pausing the initiative would create “remarkably disruptive and inequitable repercussions.” The administration has positioned the program as a voluntary opportunity for employees to leave while receiving extended pay and benefits. However, the rushed nature of the offer and the potential for legal challenges have cast doubt on its legitimacy.

Legal and Ethical Concerns Over the Program

Legal experts have expressed skepticism about the program’s legality, particularly because Congress has only appropriated funds through March 14. This raises questions about whether the government can fulfill its promise of pay and benefits through September.

Additionally, some officials worry that department secretaries could revoke employees’ resignation agreements after acceptance, leaving them without pay. While OPM insists that these assurances are binding, concerns persist over the security of workers who opt into the buyout.

Judge O’Toole, a Clinton appointee, will hear arguments from both sides in U.S. District Court in Boston at 2 p.m. ET on Monday. The case could determine whether the buyout program proceeds or faces further legal challenges. With nearly two million federal employees eligible for the offer, the ruling could have widespread implications for the federal workforce. As the court weighs the legality and fairness of the program, federal workers remain uncertain about their future.