US judge allows Trump's federal worker buyout plan to proceed

A federal judge has allowed Donald Trump's administration to carry out its federal worker buyout programme as the Republican president moves to overhaul and downsize the US government, handing a setback to unions seeking to stop the plan.

US District Judge George O'Toole in Boston rejected a request on Wednesday by unions representing more than 800,000 federal employees for an order blocking implementation of the programme.

The unions have called the administration's "deferred resignation" offer to federal civilian employees unlawful.

Trump wants to use financial incentives to encourage government employees to quit.

Later, a spokesperson for the US Office of Personnel Management said about 75,000 US federal workers accepted the deferred buyout programme.

'Humane off-ramp'

The programme has been spearheaded by Elon Musk, who is serving as Trump's top adviser for reducing federal spending.

Under the plan, employees can stop working and get paid until September 30.

Labour unions argued the plan is illegal and asked for O'Toole to keep it on hold and prevent the Office of Personnel Management, or OPM, from soliciting more workers to sign up.

A Justice Department lawyer has called the plan a "humane off-ramp" for federal employees who may have structured their lives around working remotely and have been ordered to return to government offices.