A federal judge has temporarily blocked the deferred resignation program, which required federal employees to choose between resignation or returning to the office. Originally, the deadline for accepting the buyout offer was set for 11:59 p.m. on February 6. However, a Massachusetts judge extended it until at least Monday, following a lawsuit from federal employee unions.
A federal judge has temporarily blocked the deferred resignation program, which required federal employees to choose between resignation or returning to the office. Originally, the deadline for accepting the buyout offer was set for 11:59 p.m. on February 6. However, a Massachusetts judge extended it until at least Monday, following a lawsuit from federal employee unions.
The unions argued that the administration could not guarantee pay beyond March 14, when the current budget expires. The deferred resignation program mirrored Elon Musk’s approach at Twitter, offering employees their full salary and benefits through September without requiring them to work—if they accepted the buyout. Otherwise, employees would have to return to in-office work.
According to reports, around 40,000 federal employees have accepted the offer. This is nearly double the 20,000 reported just one day earlier. Meanwhile, CNN stated that former President Donald Trump was considering a mass layoff of employees who rejected the buyout.
Judge George O’Toole, from the U.S. District Court, halted the program’s deadline during an emergency hearing, preventing federal agencies from implementing it. The Justice Department confirmed that the Office of Personnel Management (OPM) would inform employees of the delay pending further legal proceedings.
For those choosing to remain in their roles, the administration warned that job security could not be guaranteed. The notice stated that the Trump administration might proceed with “downsizing, restructurings, and realignments” as part of efforts to reform the federal workforce. The deferred resignation program remains in legal limbo, leaving thousands of employees uncertain about their futures.
What is Deferred Resignation Program?
The Program offers federal employees an exemption from return-to-work and, in most cases, a reduced workload during the deferred resignation period agreed upon. Under the program, employees remain entitled to in duty status and to their regular pay and benefits. It allows eligible employees, an eight-month transition period —during which they will generally not be expected to work and may look for another job.