A U.S. government program aimed at reducing the federal workforce by offering financial incentives for voluntary resignations has officially closed to new participants.
The closure was announced Wednesday evening, shortly after U.S. District Judge George O'Toole in Boston ruled that the initiative—offering employees eight months' salary to resign—could proceed. The judge reversed an earlier decision that had temporarily blocked the plan, stating that the unions opposing it lacked legal standing to sue.
According to media reports, around 75,000 federal employees opted into the buyout program before it was shut down. The U.S. Office of Personnel Management confirmed the program's closure at 19:20 Eastern Time on Wednesday.
The initiative is part of a broader effort by the Trump administration, led by billionaire Elon Musk and the Department of Government Efficiency, to reduce the size of the federal workforce. On January 28, officials gave more than 2 million federal employees the option to resign in exchange for eight months of pay. Those who accepted were "not expected to work," except in limited cases.
The offer applied to full-time federal employees but excluded postal workers, military personnel, and certain immigration and national security officials. The proposal was communicated through an email titled "Fork in the Road", similar to one sent to Twitter employees after Musk acquired the company and began cutting jobs. Employees were initially given until February 6 to decide, though the deadline was extended due to legal challenges.
White House Press Secretary Karoline Leavitt described the program as a "generous" offer that would save taxpayers millions of dollars. However, critics—including Democrats, unions, and advocacy groups—argued it could result in a significant loss of experienced government employees, calling it a "brain drain."
The American Federation of Government Employees (AFGE) and other unions challenged the program’s legality, claiming it pressured workers into resigning with no guarantee of job security if they stayed. They also warned that, since Congress had not approved government funding beyond mid-March, those who accepted the offer might not receive the full eight months’ salary.
Although Judge O'Toole initially halted the program, he later ruled that the unions lacked the necessary legal standing to continue their challenge.
The White House has yet to comment on the decision.
AFGE National President Everett Kelley called the ruling a "setback" but stated that the union’s legal team was reviewing potential next steps.
"We continue to believe it is unlawful to force dedicated public servants into making a rushed decision about their futures without adequate information," Kelley said. "This amounts to an unfunded IOU from Elon Musk."
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