U.S. Civil Servants Granted Buyouts Amid Trump Administration Downsizing

By Nate Raymond and Karen Freifeld
BOSTON/WASHINGTON (Reuters)

Tens of thousands of U.S. civil servants were cleared to take buyouts from Donald Trump’s administration after a federal judge ruled that the downsizing effort could proceed.

About 75,000 workers, representing 3% of the civilian workforce, have signed up for the buyout, as confirmed by a spokesperson from the U.S. Office of Personnel Management (OPM). The administration has committed to pay their salaries until September 30, although unions have raised concerns about the reliability of this offer.

Unions had previously attempted to halt the buyout program, resulting in a six-day delay while U.S. District Judge George O’Toole considered their arguments. Ultimately, the judge determined that unions lacked legal standing to challenge the program and advised that the matter should be resolved through other channels.

The OPM stated, “There is no longer any doubt: the Deferred Resignation Program was both legal and a valuable option for federal employees.” Unions have yet to announce whether they will appeal the decision.

Everett Kelly, President of the American Federation of Government Employees, remarked, “Today’s ruling is a setback in the fight for dignity and fairness for public servants. But it’s not the end of that fight.”

This buyout program is part of Trump’s broader strategy to reduce the civilian workforce of 2.3 million, which he has criticized as ineffective. He has ordered agencies to prepare for substantial job cuts, with some facing reductions of up to 70%.

While Trump’s offer to pay salaries until September 30 seems appealing, current spending laws are set to expire on March 14, and there’s no guarantee that funding for salaries will continue beyond that date.

The U.S. Department of Justice has referred to the buyout initiative as a “humane off-ramp” for employees wary of Trump’s workforce reduction plans.

Unions have criticized the buyout program as “stunningly arbitrary” and violating spending laws that restrict agencies from exceeding Congressional budget approvals. They cautioned that the buyout could weaken the workforce and endanger essential government services.

In a separate case, five unions have initiated legal action to block potential mass firings of workers resisting buyouts.

Layoffs vs Congressional Budget Plan

Trump has appointed Elon Musk to lead the newly established Department of Government Efficiency, tasked with identifying ways to cut $1 trillion from the federal budget, which amounted to $6.75 trillion last year. Civilian worker salaries constitute less than 5% of this total.

If the buyout reduces headcount by less than 3%, the savings could be minimal, estimated to be less than $10 billion annually. Federal data indicates that roughly 6% of the federal workforce typically resigns or retires each year.

Musk’s initiative has targeted 15 agencies so far, dismantling two in the process, one of which served needy populations and another that protected citizens from predatory lending. Republicans argue that these cuts reflect ideological beliefs more than genuine efforts to save money.

Trump has excluded popular retirement and health benefits for seniors, which account for 36% of federal spending and are expected to consume an even greater share as the population ages.

Meanwhile, Trump’s Republican allies in Congress are developing a budget plan that amalgamates tax cuts with increased security spending—measures that could substantially elevate the national debt.