A US judge has ruled in favor of President Donald Trump’s controversial federal worker buyout plan, allowing the administration to proceed with its strategy to downsize the government workforce. The decision, issued on Wednesday, lifts a temporary hold on the initiative, which encourages federal employees to resign while continuing to receive their salaries until September.

US District Judge George O’Toole Jr. of Massachusetts dismissed a legal challenge brought by labor unions, stating that they lacked the legal standing to contest the measure. “The temporary restraining order previously entered is dissolved,” O’Toole ruled, effectively clearing the way for the buyout program to continue.

Thousands of Workers Opt In

The Trump administration has positioned the deferred resignation programme as a means to reduce federal spending, a key priority for the president. According to White House sources, tens of thousands of employees have already accepted the government’s offer.

Spearheading the initiative is Elon Musk, who serves as Trump’s top adviser on cutting federal expenses. Under the plan, workers who choose to leave their roles will continue to receive paychecks until September 30, even though they will no longer be required to perform their duties.

Opposition from Labor Unions

Federal worker unions have strongly opposed the plan, arguing that it is unlawful and could undermine job security within the government. They had urged Judge O’Toole to maintain the temporary pause and prevent the Office of Personnel Management (OPM) from further soliciting employees to opt into the programme.

However, the Justice Department defended the initiative, describing it as a “humane off-ramp” for workers, particularly those who had structured their lives around remote work and were now required to return to government offices.

With the legal roadblocks removed, the buyout program is set to move forward, reshaping the federal workforce in line with Trump’s broader vision of streamlining government operations.