The Trump administration has decided to close a program designed to reduce the number of federal employees by encouraging resignations. This decision was made on Wednesday and will proceed with the next stages as planned.

The ruling came from US District Judge George O’Toole in Boston, who stated that the unions seeking to halt the program did not have legal standing.

According to US media reports, approximately 75,000 federal employees signed up for the program before it was suspended.

An announcement on the US Office of Personnel Management’s website confirmed the program’s closure as of 19:20 ET on Wednesday.

The program offered over two million federal workers the option to resign and receive eight months of pay as part of an initiative to slash government size. This effort was led by the Department of Government Efficiency and reportedly supported by billionaire Elon Musk.

Despite the White House describing the offer as “generous,” several unions and advocacy groups expressed concern over the program’s legality, citing a potential “brain drain” from the federal workforce. They argued that the email announcement promoting the program was misleading and that employees were being pressured to resign without adequate information or job security.

The American Federation of Government Employees (AFGE) and other unions called the offer unconstitutional, arguing there was no guarantee of receiving the full eight months of pay promised. According to these unions, Congress had not yet approved the necessary funding.

After issuing an injunction to pause the program initially, Judge O’Toole ruled that the unions were not the right party to challenge the program in court.

White House Press Secretary Karoline Leavitt touted the program as a cost-effective measure to save taxpayers money, while AFGE National President Everett Kelley viewed the ruling as a setback, vowing to seek further legal action.

The program was a pivotal part of the Drive to Reshape the Federal Workforce initiative, an ambitious agenda spearheaded by the Department of Government Efficiency. This department was arguably at the forefront of the administration’s efforts to make deep reductions to the federal workforce.

With about 75,000 workers already choosing to participate, the closure of the program will likely affect federal agencies and departments across the country. The effects on government operations remain to be seen.

The Trump administration’s decision to close the program and proceed is likely to intensify debate over the balance between fiscal responsibility and maintaining a stable and well-equipped federal workforce. Whether similar initiatives will follow remains to be seen.