Judge clears path for Trump’s federal workforce cuts, allowing 75,000 workers to resign under deferred resignation program – The Times of India

A federal judge ruled in favor of President Donald Trump’s controversial plan to downsize the federal workforce, removing a key legal obstacle that had previously stalled the initiative. The ruling comes after a challenge from labor unions who argued the plan was illegal. With the judge’s decision, approximately 75,000 federal workers are now able to resign under a deferred resignation program, which offers them pay through September 30, 2025, as an incentive to leave their government positions, as reported by the Associated Press.
The program, originally announced as part of Trump’s broader efforts to reduce federal spending, provides workers a financial cushion as they transition out of their roles. Under the plan, employees are given the opportunity to step down, while continuing to receive their salary for the next several months, without the immediate need to seek other employment. This ruling marks a significant victory for the administration, which had faced multiple setbacks in court over the past few years.
Deferred resignation program opens for 75,000 workers
The deferred resignation program was introduced as a way to shrink the size of the federal workforce without resorting to direct layoffs. Approximately 75,000 federal employees, spanning across various government departments, have already accepted the offer. The program provides these workers with a financial safety net during the transition period, with payments extending through the end of September 2025.
Elon Musk, who serves as one of Trump’s key advisors on reducing federal spending, played a pivotal role in shaping the plan. Musk has argued that the program is a “humane off-ramp” for workers who might have structured their lives around remote work but are now being asked to return to in-office jobs, as quoted by the Associated Press. The offer aimed to provide these workers with an option to leave on their own terms, minimizing the disruption caused by the shifting government work dynamics.
Legal challenges and union objections
Labor unions, including the American Federation of Government Employees, quickly filed lawsuits in opposition to the program, arguing that the resignation program was coercive and lacked adequate protections for workers. The unions contended that forcing employees to make quick decisions about whether to resign—with limited time and information—was an unfair burden on the workforce, as reported by the Associated Press.
Despite the unions’ objections, US District Judge George O’Toole ruled that they did not have the legal standing to challenge the plan directly, as they were not directly affected by it. His decision cleared the way for the program to continue, though unions have expressed their intent to explore further legal options.
Impact on the federal workforce
The decision to move forward with the program has wide-reaching implications for the federal workforce. While the exact number of departments affected is unclear, workers from various government sectors, including administration, defense, and health, are expected to be impacted. As the program moves forward, experts will closely monitor how it influences federal agencies’ operations, and whether it leads to lasting changes in government staffing levels, as reported by the Associated Press.