US judge clears the way for tens of thousands of federal workers to take Trump buyout

BOSTON/WASHINGTON - Tens of thousands of US civil servants were cleared to take a buyout from US President Donald Trump’s administration on Feb 12 after a federal judge ruled the unprecedented downsizing effort could proceed.

About 75,000 workers have signed up for the buyout, said a spokesperson for the US Office of Personnel Management, equal to 3 per cent of the civilian workforce.

Mr Trump’s administration has promised to pay their salaries through October without requiring them to work, though unions have warned the offer is not trustworthy.

Unions representing federal workers had sued to stop the programme, and had delayed it for six days while US District Judge George O’Toole in Boston considered the issue.

But the judge ruled on Feb 12 that the unions did not have legal standing to bring the lawsuit and said the issue needed to be tackled in other forums before landing in court.

The administration said the programme is now closed to new applicants.

“There is no longer any doubt: the Deferred Resignation Programme was both legal and a valuable option for federal employees,” the Office of Personnel Management said in a statement.

Unions involved in the dispute did not immediately say whether they would appeal the judge’s decision or pursue other options.

“Today’s ruling is a setback in the fight for dignity and fairness for public servants. But it’s not the end of that fight,” said Mr Everett Kelly, president of the American Federation of Government Employees, which represents 800,000 federal workers.

The buyout is one of many approaches Mr Trump is taking to slash a civilian workforce of 2.3 million that he has blasted as ineffective and biased against him.

He has also ordered government agencies to prepare for wide-ranging job cuts, and several have already begun to lay off recent hires who lack full job security.

Officials have been told to prepare staff cuts of up to 70 per cent at some agencies, sources say.

Mr Trump’s offer to pay salaries and benefits until October may not be ironclad.

Current spending laws expire on March 14, and there is no guarantee that salaries would be funded beyond that point.

Lawyers with the US Department of Justice had described the initiative as a “humane off-ramp” for those frustrated by Mr Trump’s broader plans to reduce the size of the workforce and end the ability of many to work from home.

Unions representing federal employees argued in their lawsuit that the programme was “stunningly arbitrary” and violates a law that prevents agencies from spending more money than approved by Congress.

They warned the buyout, which does not apply to border guards, air traffic controllers and some other workers, could thin the workforce in an arbitrary fashion and disrupt vital government services.

Unions and Democratic attorneys-general have brought several other lawsuits challenging Mr Trump’s rapid remaking of the government and won some initial victories.

In a separate lawsuit filed on Feb 12, five unions sued to block what they called a possible mass firing of hundreds of thousands of workers who resist pressure to accept the buyouts.

Layoffs versus congressional budget plan

Mr Trump has deputised billionaire Elon Musk to head the newly created Department of Government Efficiency, which is combing through payment and personnel records in an effort to cut US$1 trillion (S$1.35 trillion) from the federal budget, which totalled US$6.75 trillion in 2024.

Civilian worker salaries account for less than 5 per cent of that total.

If the buyout reduces headcount by less than 3 per cent, it could deliver less than US$10 billion in annual savings.

Roughly 6 per cent of the workforce either resigns or retires each year, federal figures show.

Mr Trump has ordered federal agencies to work with Mr Musk’s team to identify employees who can be laid off and functions that can be eliminated entirely.

Mr Musk’s team has focused on 15 agencies so far and has dismantled two – one that provides a lifeline to the world’s needy and another that protects Americans from unscrupulous lenders.

Some Republican budget experts say the effort reflects conservative ideology more than a good-faith effort to save taxpayer dollars.

Mr Trump himself has ruled out cuts to popular retirement and health benefits for seniors that currently account for 36 per cent of federal spending and are projected to eat up more of the budget as the population ages.

Mr Trump’s Republican allies in Congress, meanwhile, are preparing a budget plan that would cut taxes and increase security spending, which independent experts say would add trillions of dollars to the national debt. REUTERS