Trump's Push To Reshape Federal Workforce With Buyouts Stalls In Court

The Trump administration's buyout plan for federal employees is facing a legal roadblock after a federal judge temporarily halted the initiative just hours before the acceptance deadline Thursday.

The nationwide pause disrupts a controversial effort that could reshape the federal workforce by encouraging mass resignations, a move that critics argue is designed to clear out career officials, CNBC reports.

What Happened: A federal court in Boston intervened on Thursday to halt the administration's offer, which had already been accepted by more than 60,000 federal employees, or roughly 3% of the workforce. Judge George O'Toole Jr. ordered agencies to notify workers the program has been paused until at least Monday, when a hearing will determine the legal standing of the buyout plan.

The lawsuit, filed by unions representing federal workers, challenges the legality of the administration's so-called “Fork Directive," questioning its financial viability and legal basis.

The memo presented employees with a choice: resign now and continue receiving pay and benefits until September, or risk future layoffs. The administration insisted the deadline would not be extended beyond 11:59 p.m. ET Thursday, according to CNBC.

The American Federation of Government Employees has been vocal in its opposition, arguing the initiative pressures workers into resigning under uncertain conditions.

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Why It Matters: With over 3 million employees, the federal government is the largest employer in the U.S., surpassing corporations like Walmart and Amazon in workforce size. A large-scale departure could lead to significant disruptions in government operations, delaying services and impacting economic stability.

The Pew Research Center said even a fraction of federal employees opting into the buyout could cause widespread effects on public administration.

Critics argue the directive is politically motivated, aiming to replace career employees with administration loyalists. Everett Kelley, president of the American Federation of Government Employees, described the initiative as part of a broader strategy to create an inhospitable environment for federal workers.

The Office of Personnel Management, now facing legal challenges, will need to justify the plan's structure and funding sources as scrutiny intensifies.

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