• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Politicsbuyout

Federal judge clears key hurdle for Trump and Musk’s government employee buyout plan

By
Lindsay Whitehurst
Lindsay Whitehurst
,
Chris Megerian
Chris Megerian
,
Michael Casey
Michael Casey
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Lindsay Whitehurst
Lindsay Whitehurst
,
Chris Megerian
Chris Megerian
,
Michael Casey
Michael Casey
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
February 13, 2025, 6:35 AM ET
People rally against the policies of President Donald Trump and Elon Musk at the U.S. Capitol in Washington, on Feb. 12, 2025.
People rally against the policies of President Donald Trump and Elon Musk at the U.S. Capitol in Washington, on Feb. 12, 2025. Jose Luis Magana—AP

A federal judge on Wednesday removed a key legal hurdle stalling President Donald Trump ’s plan to downsize the federal workforce with a deferred resignation program.

Recommended Video

The Boston-based judge’s order in the challenge filed by a group of labor unions was a significant legal victory for the Republican president after a string of courtroom setbacks.

“This goes to show that lawfare will not ultimately prevail over the will of 77 million Americans who supported President Trump and his priorities,” said White House press secretary Karoline Leavitt.

Another group of unions filed a lawsuit in Washington, D.C. late Wednesday, though its potential impacts were not immediately clear.

About 75,000 federal workers accepted the offer to quit in return for being paid until Sept. 30, according to McLaurine Pinover, a spokesperson for the Office of Personnel Management. She said the deferred resignation program “provides generous benefits so federal workers can plan for their futures,” and it was now closed to additional workers.

American Federation of Government Employees National President Everett Kelley said in a statement that the union’s lawyers are assessing the next steps.

“Today’s ruling is a setback in the fight for dignity and fairness for public servants,” Kelley said. “But it’s not the end of that fight. Importantly, this decision did not address the underlying lawfulness of the program.”

The union continues to maintain that it’s illegal to force American citizens to make a decision, in a few short days, without adequate information, about “whether to uproot their families and leave their careers for what amounts to an unfunded IOU from Elon Musk,” the statement said.

Read more from Fortune

  • This entrepreneurial couple cashed out their 401(k)s and sold a $126 million company—now, they run a U.K. soccer team
  • Trump’s 25% tariffs are backfiring and threatening Gen Z’s trade career aspirations—putting car manufacturing jobs in peril
  • Gen Z women are being sold a risky dream: the realities behind ‘investing’ in designer bags like the Hermès Birkin
  • Like Tim Cook and Gen Z, AEG’s top exec eats the same lunch most days and wears the same outfit
  • Warren Buffett reveals the unique education strategy he took in school—and eventually paid off with a $170 billion fortune
  •  

    U.S. District Judge George O’Toole Jr. in Boston found that the unions weren’t directly affected, so they didn’t have legal standing to challenge the program, commonly described as a buyout. O’Toole was nominated by former President Bill Clinton, a Democrat.

    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.

    Labor unions argued the plan is illegal and 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.

    A Justice Department lawyer has 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 offices.

    Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter will deliver clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
    About the Authors
    By Lindsay Whitehurst
    See full bioRight Arrow Button Icon
    By Chris Megerian
    See full bioRight Arrow Button Icon
    By Michael Casey
    See full bioRight Arrow Button Icon
    By The Associated Press
    See full bioRight Arrow Button Icon

    Latest in Politics

    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025

    Most Popular

    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Finance
    Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
    By Fortune Editors
    October 20, 2025
    Fortune Secondary Logo
    Rankings
    • 100 Best Companies
    • Fortune 500
    • Global 500
    • Fortune 500 Europe
    • Most Powerful Women
    • World's Most Admired Companies
    • See All Rankings
    • Lists Calendar
    Sections
    • Finance
    • Fortune Crypto
    • Features
    • Leadership
    • Health
    • Commentary
    • Success
    • Retail
    • Mpw
    • Tech
    • Lifestyle
    • CEO Initiative
    • Asia
    • Politics
    • Conferences
    • Europe
    • Newsletters
    • Personal Finance
    • Environment
    • Magazine
    • Education
    Customer Support
    • Frequently Asked Questions
    • Customer Service Portal
    • Privacy Policy
    • Terms Of Use
    • Single Issues For Purchase
    • International Print
    Commercial Services
    • Advertising
    • Fortune Brand Studio
    • Fortune Analytics
    • Fortune Conferences
    • Business Development
    • Group Subscriptions
    About Us
    • About Us
    • Press Center
    • Work At Fortune
    • Terms And Conditions
    • Site Map
    • About Us
    • Press Center
    • Work At Fortune
    • Terms And Conditions
    • Site Map
    • Facebook icon
    • Twitter icon
    • LinkedIn icon
    • Instagram icon
    • Pinterest icon

    Latest in Politics

    UK moves warship to Middle East for potential Hormuz mission
    PoliticsMilitary
    UK moves warship to Middle East for potential Hormuz mission
    By Ellen Milligan and BloombergMay 9, 2026
    2 hours ago
    Iran war is draining world’s oil buffer at an unprecedented pace
    EnergyOil
    Iran war is draining world’s oil buffer at an unprecedented pace
    By Grant Smith, Yongchang Chin and BloombergMay 9, 2026
    2 hours ago
    A federal judge weighing the future of a D.C. golf course doesn’t want to be Amy Poehler, but Trump might be interested as he remakes parks
    PoliticsDonald Trump
    A federal judge weighing the future of a D.C. golf course doesn’t want to be Amy Poehler, but Trump might be interested as he remakes parks
    By Steven Sloan and The Associated PressMay 9, 2026
    5 hours ago
    Russian debt defaults are surging, with a quarter of the bond market at risk, while Putin hides in bunkers fixated on his war instead of the economy
    EconomyRussia
    Russian debt defaults are surging, with a quarter of the bond market at risk, while Putin hides in bunkers fixated on his war instead of the economy
    By Jason MaMay 9, 2026
    6 hours ago
    Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals ‘dirty little secret’
    PoliticsSocial Security
    Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals ‘dirty little secret’
    By Jason MaMay 9, 2026
    8 hours ago
    Putin presides over Russia’s Victory Day parade without tanks, missiles and other heavy equipment due to threat of Ukrainian long-range drones
    PoliticsRussia
    Putin presides over Russia’s Victory Day parade without tanks, missiles and other heavy equipment due to threat of Ukrainian long-range drones
    By The Associated PressMay 9, 2026
    10 hours ago

    Most Popular

    'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
    Future of Work
    'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
    By Jake AngeloMay 9, 2026
    12 hours ago
    Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
    Politics
    Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
    By Jason MaMay 9, 2026
    8 hours ago
    A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
    Magazine
    A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
    By Sharon GoldmanMay 6, 2026
    4 days ago
    California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
    North America
    California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
    By Sasha RogelbergMay 7, 2026
    2 days ago
    You're probably safe from the Hantavirus outbreak, but here's what you absolutely must not do, experts say
    Politics
    You're probably safe from the Hantavirus outbreak, but here's what you absolutely must not do, experts say
    By Catherina GioinoMay 8, 2026
    1 day ago
    The CEO of Maersk, which ships 14% of everything you buy, said the Iran war is adding $500 million in monthly costs it's trying not to pass down
    Energy
    The CEO of Maersk, which ships 14% of everything you buy, said the Iran war is adding $500 million in monthly costs it's trying not to pass down
    By Sasha RogelbergMay 8, 2026
    1 day ago

    © 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
    FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.