Trump’s federal buyout plan stalled as judge extends hold
Trump's federal worker buyout: pause extended
A federal judge on Monday extended a temporary restraining order blocking the Trump administration's "Fork in the Road" offer to federal employees. Judge George O’Toole said he's taken the matter under advisement, but there was no timeline on when he would make a decision.
WASHINGTON - A judge has put President Donald Trump's federal buyout plan on hold, stalling his efforts to downsize the federal workforce.
It's the latest example of how the Republican president's ambitious plans have become ensnared in the judicial system.
What we know:
U.S. District Judge George O’Toole Jr. paused the deferred resignation program, commonly described as a buyout, last week.
RELATED: Federal worker buyout deadline: What we know about the deferred resignation program
President Trump offers buyouts to all federal workers
President Donald Trump is offering buyouts worth seven months’ salary to all federal employees who opt to leave their jobs by Feb. 6, according to a memo from the Office of Personal Management.
On Monday, he said the stay would remain in place until he issues a ruling. It's unclear when that could happen.
The backstory:
Trump wants to use financial incentives to encourage government employees to quit. According to the White House, 65,000 workers had taken the government up on its offer as of Friday.
RELATED: Trump offers federal workers buyout with 8 months’ pay
The deferred resignation program has been spearheaded by Elon Musk, who is serving as Trump’s top adviser for reducing federal spending. Under the plan, employees can stop working and get paid until Sept. 30.
Federal workers and supporters hold signs as they demonstrate against Elon Musk and his Department of Government Efficiency (DOGE) outside of the Office of Personnel Management (OPM) headquarters on February 07, 2025 in Washington, DC. (Photo by Kayl
What they're saying:
Labor unions said the plan is illegal. They 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.
Elena Goldstein, speaking for the workers, said there were "serious questions" about the plan's rationale and legality.
"OPM seems to making this up as they are going along," she said.
She said the program was an "unprecedented action" on an "unprecedented timeline," and she described it as a pretext to remove workers and replace them with people aligned with the administration.
Eric Hamilton, a Justice Department lawyer, called the plan a "humane off ramp" for federal employees who may have structured their lives around working remotely and have been ordered to return to government buildings.
The Source: The Associated Press contributed to this report. The information in this story also came from a mix of official statements, courtroom proceedings, and reactions from key stakeholders. This story was reported from Los Angeles.