US Judge Lifts Freeze on Controversial Trump Buyout Plan, Trump and Musk Win Legal Battle
A U.S. District Judge on Wednesday lifted a temporary restraining order on a controversial buyout plan aimed at slashing the federal workforce, a decision that marks a significant win for President Donald Trump and his allies, including billionaire Elon Musk.
The buyout plan, introduced by Musk’s Department of Government Efficiency (DOGE), had previously been paused by Judge George O’Toole after labor unions representing federal employees filed a lawsuit to block it. The plan offered more than two million U.S. government employees the chance to voluntarily leave their jobs with eight months’ pay, or risk being laid off in future staff reductions.
Despite the pushback, the judge ruled that the unions, which had challenged the policy, lacked the legal standing to bring the suit, and further clarified that his court did not have jurisdiction to address the matter. O’Toole, appointed by President Bill Clinton, stated that the unions were challenging a policy that affected others, specifically employees within the executive branch and not their own direct interests.
In response to the ruling, the American Federation of Government Employees (AFGE), which represents 800,000 federal workers, called the decision a “setback” in its ongoing fight for the rights of public servants. AFGE President Everett Kelley expressed disappointment, asserting that the underlying lawfulness of the buyout plan remains unresolved. “We continue to maintain it is illegal to force American citizens who have dedicated their careers to public service to make a decision, in a few short days, without adequate information,” Kelley said in a statement.
The buyout scheme, which was endorsed by the Trump administration, has been a central part of efforts to reduce the size and cost of the U.S. federal workforce. Over 65,000 federal employees have reportedly accepted the buyout offer, signaling a significant portion of the workforce is willing to take the offer to leave.
Musk, who is spearheading the program, has faced considerable scrutiny. As the world’s richest person and a major Trump donor, Musk’s vision for government efficiency has led to the closure of several federal agencies, job cuts, and widespread legal challenges. The buyout is just one piece of Musk’s broader goal to slash government spending by eliminating or downsizing federal agencies.
The White House, in defending the buyout plan, blasted the judicial system for what it described as “abuses of power” by district court judges who have blocked key executive actions from President Trump. White House Press Secretary Karoline Leavitt argued that the judiciary was undermining the will of the voters who elected Trump, accusing judges of “acting as judicial activists” rather than impartial legal arbiters.
“This is the first of many legal wins for the President,” Leavitt declared after the freeze was lifted.
Attorney General Pam Bondi, speaking at her first press conference, praised Musk as a “great man” and reiterated the administration’s full support for his efforts. She was also asked about the possibility of impeaching federal judges who oppose Trump’s policies, but Bondi ruled out that course of action, affirming that the administration would instead follow the legal process.
Despite the judicial setbacks, the Trump administration remains steadfast in its efforts to reshape the federal workforce, with the ultimate goal of securing a larger overhaul through the courts, possibly leading to a Supreme Court ruling. As the legal battle continues, the fate of the buyout plan will likely hinge on further appeals and the eventual stance of the nation’s highest court.
