Topline
A judge said Monday the freeze on President Donald Trump’s buyout offer to federal civilian employees will be lifted, after pushing back last week’s deadline for more than 2 million employees to decide whether to take resignation packages with pay through September—part of Trump and billionaire Elon Musk’s bid to shrink the federal workforce.
President Donald Trump and Israeli Prime Minister Benjamin Netanyahu hold a joint press conference ... [+]
Timeline
Boston-based federal Judge George O’Toole removed his freeze on the buyout offer, allowing the Trump administration to proceed with its program after ruling the labor unions that sued the administration lacked legal standing to challenge the buyout because they did not have a direct stake in the dispute.
Citing a Office of Personnel Management spokesperson, the Associated Press reported that about 75,000 federal workers accepted the buyout offer.
O’Toole again extended his freeze on Trump’s plan to offer sweeping buyouts to millions of federal employees, ruling the pause will continue until the president “responds "to the issues at the heart of a lawsuit filed by federal workers unions.
The White House said Thursday 65,000 federal workers had accepted the offer, multiple outlets reported—an increase of 25,000 from Wednesday.
The federal judge pushed back the deadline for employees to accept the offer, initially set for 11:59 p.m. Thursday, until at least Monday in response to a lawsuit filed by federal workers unions that argued the administration could not guarantee pay beyond the March 14 expiration date for the existing budget.
The buyout offer was extended to some staffers at the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) who were initially exempt, multiple outlets reported.
About 40,000 of the approximately 2.3 million employees eligible for the buyout offer have accepted it, according to NBC News and The Washington Post—after a figure of around 20,000 was reported a day earlier.
Trump is reportedly planning mass layoffs among those who don’t take the buyouts, CNN reported Tuesday, citing two unnamed administration officials.
The CIA—which was exempt from the initial offer—extended the buyout option to all of its employees on Tuesday and will also implement a hiring freeze, the Wall Street Journal reported.
The Office of Personnel Management announced in a memo posted to its website and in a mass email to federal employees that all full-time federal civilian staffers had the option of taking buyouts by Feb. 6 that would allow them to be paid, with benefits, through Sept. 30.
"The majority of federal agencies are likely to be downsized through restructurings, realignments, and reductions in force,” the email stated, warning that a significant number of federal employees would be furloughed or reclassified to “at-will,” making them easier to fire.
How Many Federal Workers Are Taking Buyouts?
Around 75,000 workers have reportedly taken the offer so far. That represents more than 3% of those who were offered the deal—a large job cut by any measure, but short of the White House’s reported goal of slashing between 5% and 10% of the federal workforce through buyouts.
How Many Workers Typically Resign Each Year?
About 150,000, or 7%, of the federal workforce quits or retires per year, while another 50,000-60,000 are terminated, according to The New York Times. For that reason, it’s unclear how much the 75,000 buyouts will shrink the federal workforce since some of the departing staff may have left regardless.
Who Is Eligible For The Federal Buyouts? Which Employees Are Exempt From The Offer?
The vast majority of civilian staff are eligible for the buyouts. Military armed forces personnel, U.S. Postal Service employees, immigration enforcement and national security employees and workers related to public safety are exempt, according to an OPM fact sheet. Agency heads can also identify exemptions within their departments.
Do Federal Employees Still Need To Work After Taking A Buyout?
Guidance posted to the Office of Personnel Management website states that they are not, however sample contracts sent to some federal employees this week states they must agree to work through Feb. 28 and will be put on paid administrative leave by March 1, NPR reported. The draft contract sent to Environmental Protection Agency employees also acknowledges that the pay guarantee through Sept. 30 is “subject to the availability of appropriations” dictated by Congress, which must approve a new budget by the time the current one expires on March 14.
Is Elon Musk Involved In Cutting Federal Staff?
Yes. Trump appointed billionaire Elon Musk to lead his Department of Government Efficiency spearheading sweeping cuts to government agencies, including shutting down the U.S. Agency for International Development and halting work at the Consumer Financial Protection Bureau. The Jan. 28 email offering buyouts to federal staff was titled “Fork in the Road,” the same subject line Musk used in making a similar offer to Twitter employees after he bought the company in 2022.
How Do The Buyouts Compare To Other Mass Layoffs?
If the Trump administration reaches its goal of cutting 5% to 10% of staff, more than 100,000 people will leave the federal workforce, making it by far the largest layoff in U.S. history. The current record-holder is IBM, which cut 60,000 jobs in 1993.
Are The Buyouts Legal?
Some critics say no. The American Federation of Government Employees and other unions representing more than 800,000 government workers filed a federal lawsuit Tuesday asking a Massachusetts court to temporarily stop the directive. The union warned its members last week that the existing government budget is only effective through March 14, so the government can not guarantee pay beyond then. Employment lawyers and some Democrats have also cast doubt on the legality of the order without congressional approval.
Contra
Office of Personnel Management spokesperson McLaurine Pinover accused critics of the offer of “spreading misinformation and using workers as political pawns” in a statement insisting the proposal “was thoroughly vetted and intentionally designed to support employees through restructuring.”
Key Background
The effort is part of Trump’s plans to significantly reduce the size of the federal government, including by freezing most hiring, barring remote work and eliminating some agencies, such as the Department of Education, entirely. Workers at the U.S. Agency for International Development and the Consumer Financial Protection Bureau have been told to cease operations while the Trump administration assesses whether its work is in line with his executive orders. The Trump administration has fired inspectors general and Justice Department staff involved in prosecuting him. Trump also placed all diversity, equity and inclusion employees on paid leave and ordered each agency to cut its DEI programs.
Further Reading
Trump Vs. Education Department: Trump Wants ‘States To Run Schools’ — Here’s What We Know (Forbes)
USAID Controversy Live Updates: Nearly All Of USAID’s 10,000 Global Staffers To Be Placed On Leave (Forbes)
The Biggest Job Cut In U.S. History Hit 60,000 Workers. Trump Could Push Out Far More. (Forbes)
