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The Finance Base
Deferred Resignation

Trump’s Federal Worker Buyout Offer Goes to Court as 65,000 Agree to Leave

A Boston judge paused and then lifted a challenge to the federal deferred resignation offer. Here’s what OPM promised, how many workers reportedly accepted, and what the ruling meant.

By TheFinanceBase Team 3 min read
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The Trump administration’s federal worker “buyout”—officially, the deferred resignation offer—was temporarily paused by a Boston judge on February 6, 2025, while a court challenge was pending. At that point, a White House official told The Associated Press that 65,000 workers had signed up. On February 12, the judge lifted the pause on procedural grounds; that ruling did not decide whether the offer was lawful.

What the deferred resignation offer promised

In an email sent January 28, 2025, the Office of Personnel Management (OPM) offered eligible federal employees the option to resign effective September 30, 2025. OPM said those who accepted would keep their current compensation and existing benefits—including retirement accrual—until that date. The arrangement was commonly called a “buyout,” but it was not described as an immediate lump-sum severance payment. OPM’s offer FAQ and original offer letter set out the terms.

OPM said participation was voluntary. The original email stated: “Response to this email is voluntary. Although you must respond to take advantage of the deferred resignation offer, there is no penalty for nonresponse.” OPM’s FAQ said the offer generally applied to full-time federal employees, subject to exclusions that included military personnel, U.S. Postal Service employees, certain immigration-enforcement, national-security and public-safety roles, and positions an agency excluded.

OPM also said accepting employees would be exempt from return-to-office requirements. Agencies could change their assignments or duties, or place them on paid administrative leave, while they remained on the rolls through the planned resignation date. An employee could ask to rescind acceptance, but OPM said the employing agency would review the request and could deny it if operational changes—such as reassignment or administrative leave—provided a reason.

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Why unions challenged the offer

Federal employee unions went to court to challenge the administration’s offer. The Boston case raised questions about the program and its implementation, but the February ruling turned on whether the unions bringing the case had standing and whether the district court had jurisdiction—not on a final assessment of the offer’s legality.

What happened in the Boston case

Date Court action and participation figure
February 6, 2025 Judge George O’Toole Jr. temporarily paused implementation pending a hearing and directed the administration to extend the deadline. A White House official told AP that 65,000 workers had signed up by then.
February 12, 2025 O’Toole lifted the pause after finding that the union plaintiffs lacked standing. AP reported that OPM spokesperson McLaurine Pinover said about 75,000 workers had accepted and that the program was closed to additional workers.

The counts describe different reporting moments, not competing final totals: the 65,000 figure was attributed to a White House official on February 6, and the approximately 75,000 figure to OPM spokesperson McLaurine Pinover on February 12. Neither figure, by itself, establishes the program’s broader effects on federal employment or services.

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What the judge did—and did not—decide

In lifting the pause, O’Toole did not rule that the deferred resignation offer was lawful. ABC News reported that he found the unions lacked a direct stake and that the district court lacked jurisdiction because the Federal Service Labor-Management Relations Statute provided an administrative review path. AP quoted AFGE president Everett Kelley saying the decision “did not address the underlying lawfulness of the program.”

That distinction matters: the February 12 order ended the temporary court-imposed pause in this case, but it was not a merits judgment approving the offer. A separate later case in the U.S. District Court for the District of Columbia addressed union claims involving probationary terminations, anticipated reductions in force and any renewal of the deferred resignation program. That court said it likely lacked subject-matter jurisdiction over the claims before it; it was not a merits resolution of the Boston challenge.

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