An oversized fork is seen at a rally with federal workers and supporters as they protest against Elon Musk and his Department of Government Efficiency outside of the Office of Personnel Management headquarters on Feb. 7, 2025. The group protested DOGE initiatives, including the "Fork in the Road" deferred resignation offer sent to OPM employees. Kayla Bartkowski/Getty Images
Federal judge clears way for 'deferred resignations'
U.S. District Judge George A. O’Toole Jr. found that unions must first adjudicate their claims before the Merit Systems Protection Board or Federal Labor Relations Authority before suing in court.
Updated at 7:30 p.m.
The federal judge who had temporarily blocked President Trump and Elon Musk’s plan to offer most federal workers paid administrative leave if they resign by September 30 reversed course Tuesday, dissolving the temporary restraining order upon concluding he lacked jurisdiction in the case.
The American Federation of Government Employees had sued to block the "deferred resignation" program, arguing that its chaotic rollout and shifting legal justifications constituted violations of the Administrative Procedure Act’s protections against “arbitrary and capricious” decision-making, and that the promise to pay employees past the March 14 shutdown deadline could constitute an Anti-Deficiency Act violation.
But the government argued that the unions lacked standing in the case because the 1978 Civil Service Reform Act channels most disputes over federal personnel policy or decisions to either the Federal Labor Relations Authority, the Merit Systems Protection Board or U.S. Office of Special Counsel. This week, Trump has removed leaders from all three agencies amid a governmentwide purge of appointees in watchdog roles.
In his decision, U.S. District Judge George A. O’Toole Jr., a Clinton appointee in Massachusetts, wrote that the union’s challenges are of the type Congress “intended for review within the statutory scheme,” referring to the need to file administrative appeals before going to court. He also denied the union’s request for a preliminary injunction.
“Aggrieved employees can bring claims through the administrative process,” he wrote. “That the unions themselves may be foreclosed from this administrative process does not mean that adequate judicial review is lacking.”
The administration said Monday that 65,000 employees had accepted the deferred resignation offer thus far. In a statement Wednesday night, OPM spokeswoman McLaurine Pinover said that the administration closed the program to new applicants at 7 p.m.
"There is no longer any doubt: the Deferred Resignation Program was both legal and a valuable option for federal employees," Pinover said, despite the fact that O'Toole's decision was solely on jurisdictional grounds. "This program was carefully designed, thoroughly vetted, and provides generous benefits so federal workers can plan for their futures."
In a statement Wednesday evening, AFGE National President Everett Kelley called the ruling a "setback" but said his union would continue to fight the initiative's implementation.
"AFGE's lawyers are evaluating the decision and assessing next steps," he said. "Importantly, this decision did not address the underlying lawfulness of the program. We continue to maintain it is illegal to force American citizens who have dedicated their careers to public service to make a decision, in a few short days, without adequate information, about whether to uproot their families and leave their careers for what amounts to an unfunded IOU from Elon Musk.”