Federal employees across the United States have received additional time to consider a controversial "deferred resignation" offer after a federal judge temporarily suspended Thursday's midnight deadline.
U.S. District Judge George O'Toole barred the Office of Personnel Management (OPM) from implementing the deadline, extending it to Monday, February 10, at 11:59 p.m. EST. The decision affects approximately 2.3 million civilian federal workers who must choose whether to accept the resignation offer or keep their current positions.
Under the proposal, employees who accept would continue receiving pay and benefits through September without having to report to work. However, those who decline could face potential job cuts as the administration aims to reduce the federal workforce.
About 40,000 federal workers - roughly 2% of the workforce - had accepted the deal through February 5, according to sources familiar with the matter. The White House expects up to 10% of civilian federal employees to take the offer, projecting $100 billion in annual savings.
Employment experts and union officials have raised concerns about the offer's unclear terms and potential risks. "There is a risk for employees to take this without knowing what would happen down the line," said Ryan Nerney, a federal employment law expert at Tully Rinckey.
The proposal faces legal challenges from federal employee unions, who filed a lawsuit on February 4 claiming it violates multiple laws, including the Administrative Procedure Act. The unions argue the administration lacks authority to extend such an offer and question funding guarantees beyond March 14, when current agency appropriations expire.
The deal mirrors a similar ultimatum given to Twitter (now X) employees in 2022 by Elon Musk, who now leads the White House's Department of Government Efficiency (DOGE) task force focused on reducing federal costs.
Critics worry that widespread resignations could impact essential government services like tax processing, Social Security verification, and healthcare programs. "The federal government is not Twitter," said Doreen Greenwald, National Treasury Employees Union president, emphasizing that federal operations are congressionally funded to uphold laws.
As federal workers weigh their options under the extended deadline, many face uncertainty about their careers and the future of government services. The administration maintains it will honor the deferred resignation offer, while promising to find "highly qualified people" to replace departing employees.