US judge lifts freeze on Trump admin buyout plan

U.S. President Donald Trump speaks during a news conference in the Roosevelt Room of the White House on January 21, 2025 in Washington, DC. (Photograph: Andrew Harnik / Getty Images)
A U.S. judge lifted a temporary freeze on a buyout plan aimed at reducing the federal workforce, marking a win for President Donald Trump in his efforts to downsize the government.

On Wednesday, U.S. District Judge George O’Toole removed his restraining order on the buyout proposal, which had been put on hold last week. The plan, spearheaded by billionaire Elon Musk, encourages federal employees to voluntarily leave their positions with an offer of eight months’ pay, rather than risk being fired in future workforce reductions.

Labor unions representing federal employees had filed a lawsuit to block the initiative, arguing it would harm workers. The “Fork in the Road” offer was sent to more than two million U.S. government employees, giving them a choice to accept the buyout or face potential job cuts later.

The White House reported that over 65,000 federal workers have already accepted the offer from the Office of Personnel Management.

Judge O’Toole, a Bill Clinton appointee, ruled that the unions lacked standing to bring the lawsuit, stating that the unions did not have a direct stake in the directive, which mainly affects executive branch employees.

The American Federation of Government Employees (AFGE), which represents 800,000 federal workers, called the ruling a setback for public servants. “But this is not the end of the fight,” AFGE President Everett Kelley said in a statement. “Importantly, this decision did not address the legality of the program. We continue to believe it is illegal to force dedicated public servants to make a hasty decision about their future without adequate information.”

Musk, who is leading a government efficiency initiative under Trump’s administration, heads the Department of Government Efficiency (DOGE), a body designed to cut government spending by reducing the size of federal agencies. His efforts have caused significant disruption, leading to legal challenges and sparking debates over the legality of the program.

Trump’s executive actions have been contested in several court cases, with the White House accusing judges of overstepping their authority. “The real constitutional crisis is occurring within our judicial branch,” said White House Press Secretary Karoline Leavitt. “District court judges are abusing their power to block the president’s executive authority.”

Leavitt, who described the judicial interventions as an attempt to undermine the will of the people, celebrated the lifted freeze as a victory for the president. “This is the first of many legal wins for the president,” she said.

At a press conference, Attorney General Pam Bondi praised Musk as a “great man” and reaffirmed the administration’s support for his efforts. When asked about the possibility of impeaching federal judges, Bondi dismissed the idea, saying the administration would “follow the law” and rely on the process.

While acknowledging that federal judges have lifetime appointments, Bondi suggested the Supreme Court could ultimately overturn any rulings if the appellate courts fail to adhere to the law.

AFP