• Home
  • Latest
  • Coins2Day 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 Coins2Day

  • 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.

    Join us at the Coins2Day Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
    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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day 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 Coins2Day Editors
    October 20, 2025
    Rankings
    • 100 Best Companies
    • Coins2Day 500
    • Global 500
    • Coins2Day 500 Europe
    • Most Powerful Women
    • Future 50
    • World’s Most Admired Companies
    • See All Rankings
    Sections
    • Finance
    • Leadership
    • Success
    • Tech
    • Asia
    • Europe
    • Environment
    • Coins2Day Crypto
    • Health
    • Retail
    • Lifestyle
    • Politics
    • Newsletters
    • Magazine
    • Features
    • Commentary
    • Mpw
    • CEO Initiative
    • Conferences
    • Personal Finance
    • Education
    Customer Support
    • Frequently Asked Questions
    • Customer Service Portal
    • Privacy Policy
    • Terms Of Use
    • Single Issues For Purchase
    • International Print
    Commercial Services
    • Advertising
    • Coins2Day Brand Studio
    • Coins2Day Analytics
    • Coins2Day Conferences
    • Business Development
    About Us
    • About Us
    • Editorial Calendar
    • Press Center
    • Work At Coins2Day
    • Diversity And Inclusion
    • Terms And Conditions
    • Site Map
    • Facebook icon
    • Twitter icon
    • LinkedIn icon
    • Instagram icon
    • Pinterest icon

    Most Popular

    placeholder alt text
    North America
    'I meant what I said in Davos': Carney says he really is planning a Canada split with the U.S. along with 12 new trade deals
    By Rob Gillies and The Associated PressJanuary 28, 2026
    2 days ago
    placeholder alt text
    Politics
    The American taxpayer spent nearly half a billion dollars deploying federal troops to U.S. cities in 2025, CBO finds
    By Nick LichtenbergJanuary 28, 2026
    2 days ago
    placeholder alt text
    C-Suite
    Jeff Bezos capped his Amazon salary at $80,000: ‘How could I possibly need more incentive?’
    By Sydney LakeJanuary 28, 2026
    2 days ago
    placeholder alt text
    Economy
    Right before Trump named Warsh to lead the Fed, Powell seemed to respond to some of his biggest complaints about the central bank
    By Jason MaJanuary 30, 2026
    7 hours ago
    placeholder alt text
    C-Suite
    Coins2Day 500 CEOs are no longer giving employees an A for effort. Now they want proof of impact
    By Claire ZillmanJanuary 28, 2026
    3 days ago
    placeholder alt text
    Investing
    Jerome Powell got a direct question about the U.S. ‘losing credibility’ and the soaring price of gold and silver. He punted
    By Eva RoytburgJanuary 29, 2026
    1 day ago

    © 2026 Coins2Day 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 Coins2Day 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.


    Latest in Politics

    PoliticsJeffrey Epstein
    Latest Epstein files detail contact with Howard Lutnick, Steve Bannon and Goldman Sachs lawyer
    By Eric Tucker, Michael R. Sisak, Alanna Durkin Richer and The Associated PressJanuary 30, 2026
    6 minutes ago
    In this handout, the mug shot of Jeffrey Epstein, 2019.
    PoliticsJeffrey Epstein
    Elon Musk and Jeffrey Epstein emailed each other for years trying to meet up, new Justice Department records show
    By Eva Roytburg and Sasha RogelbergJanuary 30, 2026
    7 minutes ago
    United States President Donald Trump
    EconomyInflation
    Trump’s unlikely promise to ‘end inflation’ still saw families paying an extra $2,120 for goods and services in 2025
    By Eleanor PringleJanuary 30, 2026
    3 hours ago
    Donald Trump with a frown.
    Politicsmining
    3 big hurdles undermine Trump’s plan to extract Greenland’s mineral wealth—and America’s fraying relationship with Europe is one of them
    By Tristan BoveJanuary 30, 2026
    4 hours ago
    ExxonMobil CEO Darren Woods, far right, listens as U.S. President Donald Trump,left, speaks during a meeting with oil company executives in the East Room of the White House on Jan. 9. President Trump is aiming to convince oil executives to support his plans in Venezuela, a country whose energy resources he says he expects to control for years to come. US forces seized Venezuelan president Nicolas Maduro in a sweeping military operation on January 3, with Trump making no secret that control of Venezuela's oil was at the heart of his actions.
    EnergyBig Oil
    Exxon and Chevron decline new spending in Venezuela while taking a wait-and-see approach for the years ahead
    By Jordan BlumJanuary 30, 2026
    5 hours ago
    CryptoBitcoin
    Bitcoin’s freefall approaches $80,000 as precious metals also tank
    By Ben WeissJanuary 30, 2026
    6 hours ago