U.S. District Judge George A. O’Toole Jr. has temporarily blocked President Donald Trump’s contentious plan to offer federal employees a “deferred resignation” package. The ruling came just hours before the midnight deadline on Thursday, February 6, 2025, when government workers were required to decide whether to accept the administration’s buyout offer.

The Trump administration, in collaboration with billionaire adviser Elon Musk, had proposed a program allowing federal employees to resign while continuing to receive their salaries and benefits until September 30, 2025. This initiative, dubbed the “Fork in the Road” program was part of the administration’s efforts to reduce the federal workforce.

The American Federation of Government Employees (AFGE) urged federal employees not to accept the offer. Democrats and some Republican lawmakers said the program is illegal. The offer wasn’t authorized by Congress, raising the risk that workers might not get paid. The funding for the government only extends through mid-March, making payments beyond that date uncertain without Congressional approval.

Several labor unions, including the American Federation of Government Employees, AFSCME, and the National Association of Government Employees, filed lawsuits against the Office of Personnel Management (OPM) to halt the program. The unions argued that the buyout plan violated the Anti-Deficiency Act by pledging federal payments beyond the current government funding deadline of March 14. They also contended that the program’s ever-changing provisions and legal justifications were in breach of the Administrative Procedures Act.

The Anti-Deficiency Act (ADA) is a key piece of legislation that governs federal spending in the United States. It imposes several important restrictions on federal agencies and employees:

Key Provisions

1. Spending Limits: The ADA prohibits federal employees from:
   • Making or authorizing expenditures or obligations exceeding the amount available in an appropriation or fund.
   • Involving the government in contracts or obligations before funds are appropriated.
2. Voluntary Services: The Act forbids accepting voluntary services or employing personal services not authorized by law, except in emergencies involving human safety or property protection.
3. Apportionment: It prohibits making obligations or expenditures that exceed an apportionment or amount permitted by agency regulations.

The Administrative Procedure Act (APA) is a foundational federal law in the United States that governs how administrative agencies operate. Enacted in 1946, the APA serves as a statutory constitution for administrative government, establishing key procedural requirements and standards for federal agency actions. Here are the main aspects of the APA:

Purpose and Scope

The APA has several fundamental purposes:

1. To require agencies to keep the public informed about their organization, procedures, and rules.
2. To provide for public participation in the rulemaking process.
3. To establish uniform standards for formal rulemaking and adjudicatory proceedings.
4. To define the scope of judicial review of agency actions.

The Act applies to most federal agencies, excluding Congress, federal courts, and territorial governments.

Judge O’Toole, a Clinton appointee, issued an injunction against the implementation of the “Fork” directive until both parties can present oral arguments. He scheduled a hearing for Monday afternoon to consider the legality of the program. The judge also ordered the government to inform all employees who received the original offer that the deadline has been extended until at least Monday of next week.

Roughly 40,000 federal workers — or about 2% of the government workforce — have accepted the deal, according to White House press secretary Karoline Leavitt. 

 “We are grateful to the judge for extending the deadline so more federal workers who refuse to show up to the office can take the administration up on this very generous, once-in-a-lifetime offer,” Leavitt said.