A U.S. judge has lifted the temporary hold on a controversial federal worker buyout plan, delivering a win for President Donald Trump’s initiative to drastically reduce the government workforce. The ruling clears the way for the mass buyout program, which has already led tens of thousands of federal employees to consider their options.
U.S. District Judge George O’Toole had initially placed a temporary restraining order on the program last week but ruled on Wednesday that labor unions challenging the plan lacked legal standing. His decision effectively allows the Office of Personnel Management (OPM) to continue offering buyouts to federal employees.
“The unions do not have the required direct stake in the Fork Directive but are challenging a policy that affects others, specifically executive branch employees,” Judge O’Toole stated in his ruling.
The American Federation of Government Employees (AFGE), which represents approximately 800,000 federal workers, was among the unions that filed suit against the initiative. In response to the ruling, AFGE President Everett Kelley acknowledged the setback but vowed to continue the fight.
“This decision did not address the underlying legality of the program,” Kelley emphasized. “We believe it is unlawful to force public servants—who have dedicated their careers to serving the American people—to make a rushed decision about leaving their jobs, without adequate information, in exchange for what is essentially an unfunded IOU from Elon Musk.”
At the heart of the controversy is an email sent to more than two million federal employees with the subject line “Fork in the Road.” The message presented workers with a stark choice: accept a buyout offer of eight months’ salary and voluntarily leave their positions, or risk potential layoffs as part of future workforce reductions.
The White House has reported that over 65,000 federal employees have already signed on to the buyout, signaling a significant shift in the structure of the federal workforce.
Billionaire entrepreneur Elon Musk, a key supporter of Trump and the mastermind behind the initiative, has been leading efforts to streamline government operations through an entity called the Department of Government Efficiency (DOGE). Under Musk’s direction, DOGE aims to eliminate unnecessary spending and significantly downsize federal agencies.
While the administration touts this as a bold step toward cutting waste and improving efficiency, the program has also led to the effective shutdown of some federal agencies, the displacement of thousands of government workers, and a wave of legal challenges.