U.S. judge keeps his block on Trump federal buyout plan in place for now
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By Nate Raymond and Tim Reid, Reuters
A U.S. judge kept his block on President Donald Trump’s buyout plan for federal employees in place on Monday and said he would consider imposing it for a longer period of time.
The decision by U.S. District Judge George O’Toole in Boston prevents Trump’s administration from implementing the buyout plan for now, giving a temporary victory to labor unions that have sued to stop it entirely.
More than 2 million federal civilian employees had faced a midnight deadline to accept the proposal. It is unclear when O’Toole will rule on the unions' request.
The buyout effort is part of a far-reaching plan by Republican President Donald Trump and his allies to reduce the size and rein in the actions of the federal bureaucracy. Trump, who returned to the presidency on January 20, has accused the federal workforce of undercutting his agenda during his first term in office, from 2017-2021.
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Unions have urged their members not to accept the buyout offer - saying Trump’s administration cannot be trusted to honor it - but about 65,000 federal employees had signed up for the buyouts as of Friday, according to a White House official.
Reuters has been unable to independently verify that number, which does not include a breakdown of workers from each agency.
The offer promises to pay employees their regular salaries and benefits until October without requiring them to work, but that may not be ironclad. Current spending laws expire on March 14 and there is no guarantee that salaries would be funded beyond that point.
The White House has said employees could submit plans to leave through 11:59 p.m. ET Monday.
Trump has tasked Tesla (TSLA.O), opens new tab CEO and SpaceX founder Elon Musk, the world’s richest person, with overseeing the purge of federal employees through his “Department of Government Efficiency,” which is not an actual government agency.
Musk’s actions have sown panic among federal workers and prompted public protests. His actions also have led to a flood of calls to U.S. lawmakers by voters worried about the access that Musk's team has been given to sensitive information in government computer systems that contain data on federal payments to Americans and personal details of federal workers.
Musk aides have taken up senior positions at key government agencies while the billionaire has pushed for the dismantling of others, including USAID, the U.S. humanitarian and development aid agency.
Another Trump lieutenant, White House budget director Russell Vought, has ordered the Consumer Finance Protection Bureau, an independent federal agency created under a Wall Street reform law signed by Democratic former President Barack Obama in 2010, to cease its activities.
Trump said on Sunday he expects Musk to find billions of dollars of waste in military spending once he instructs him to turn his attention to the Pentagon.
Opposition Democrats and federal employee unions have decried the power Trump has bestowed on South African-born Musk, who appears largely unaccountable except to Trump himself. Trump has said Musk does not operate unilaterally but only with the president’s blessing.
A labor union that represents CFPB workers has filed a lawsuit seeking to block Vought’s actions, one of several legal challenges that Trump’s administration now faces.
Democratic attorneys general from 22 U.S. states filed a lawsuit on Monday in Boston challenging sharp cuts to federal grant funding for universities, medical centers and other research institutions by the Trump administration. The National Institutes of Health on Friday announced a cut in the government’s reimbursement rate for the indirect costs to research institutions receiving federal grants, such as laboratory space, faculty, equipment and infrastructure.
An effort to hollow out the U.S. Agency for International Development is partially on hold after a judge’s ruling. Trump’s effort to freeze trillions of dollars in federal loans, grants and other financial assistance has also been paused in a separate case.
A federal judge in Rhode Island on Monday ruled that the administration must restore all domestic funding while he considers the case.
On Saturday, a judge temporarily blocked Musk’s entity from accessing government systems used to process trillions of dollars in payments at the Treasury Department.