A federal judge has cleared the way for tens of thousands of U.S. federal workers to accept buyouts under the Trump administration’s downsizing plan, rejecting a legal challenge from labor unions.

U.S. District Judge George O’Toole in Boston ruled on Wednesday that the administration’s workforce reduction initiative could proceed, dismissing union objections and paving the way for one of the largest federal downsizing efforts in history.

According to the U.S. Office of Personnel Management (OPM), approximately 75,000 civil servants—roughly 3% of the federal civilian workforce—have opted into the buyout program.

Under the plan, the government will continue paying their salaries until October without requiring them to work, though unions have warned that these payments may not be guaranteed.

Labor unions representing federal employees had filed a lawsuit to halt the initiative, leading to a six-day delay in its implementation.

However, Judge O’Toole ruled that the unions lacked legal standing to challenge the program, stating that the issue must first be addressed through other regulatory channels before litigation.

Following the ruling, the Trump administration confirmed that the program is now closed to new applicants.

In a statement, the Office of Personnel Management (OPM) hailed the decision, declaring:

“There is no longer any doubt: the Deferred Resignation Program was both legal and a valuable option for federal employees.”

The ruling is a significant defeat for federal worker unions, which have been actively fighting the Trump administration’s broader efforts to shrink the government workforce.

Everett Kelly, president of the American Federation of Government Employees (AFGE), which represents 800,000 federal workers, called the decision a setback but vowed to continue opposing the administration’s policies.

“Today’s ruling is a setback in the fight for dignity and fairness for public servants. But it’s not the end of that fight.”

As the Trump administration moves forward with its federal workforce reduction, labor unions and affected employees are expected to pursue alternative legal and political avenues to challenge the cuts.