Judge Blocks Federal Layoffs During Shutdown

Court Halts Shutdown Layoffs

U.S. District Judge Susan Illston temporarily blocked the Trump administration from proceeding with mass federal employee layoffs on October 15, ruling the reduction-in-force notices sent during the government shutdown were "both illegal and in excess of authority."

The San Francisco-based judge's temporary restraining order bars most agencies from taking any action to issue or implement RIF notices to federal employees "during or because of the federal government shutdown." The order covers members of the American Federation of Government Employees, American Federation of State, County and Municipal Employees, and several other unions representing over 800,000 federal workers.

According to court filings from the Office of Management and Budget, approximately 4,200 federal employees across at least seven agencies received layoff notices on October 10. The affected agencies include the Department of Education (465 employees), Department of Housing and Urban Development (442 employees), Treasury Department including the IRS (1,446 employees), Department of Health and Human Services (982 employees), and others.

At the Centers for Disease Control and Prevention alone, more than 1,300 employees initially received RIF notices before nearly 800 were rescinded over the weekend due to "data discrepancies and processing errors." Human resources staff at CDC were even directed to issue layoff notices to themselves, then lost access to their email and computers after working through the weekend to correct mistakes.

Ready Fire Aim

"It's very much 'ready, fire, aim,'" Judge Illston said during the October 15 hearing, noting that the administration appeared to be taking actions without sufficient thought. She added that such an approach comes with a "human cost that cannot be tolerated."

The judge's criticism came as unions presented evidence of chaotic implementation. Thomas Nagy, an official at HHS, confirmed in court declarations that RIF notices were "erroneously issued" to hundreds of employees due to processing failures.

Office of Personnel Management updated its guidance to exempt agency RIF procedures from the shutdown—an unprecedented move, as agencies typically don't conduct layoffs during funding lapses. OMB Director Russell Vought defended the decision, claiming Congress gave tacit approval by failing to pass a continuing resolution before October 1.

"Congress is saying we're not going to fund these programs by not passing the Republican continuing resolution," Vought said on the Charlie Kirk Show. "So if there's no funding for these programs, what would you have us do?"

Federal employee unions dispute this interpretation. In their lawsuit filed with the U.S. District Court for the Northern District of California, plaintiffs argue that OMB takes the "legally unsupportable position" that funding lapses eliminate agencies' legal requirements to carry out programs Congress previously authorized.

Human Toll Mounts

Court filings paint a picture of federal employees pushed to breaking points. Mayra Medrano, a program analyst with the Commerce Department's Minority Business Development Agency, described receiving her second RIF notice this year—the first came in April with a May termination date before courts reinstated her in June.

"The constant threat of being fired, which has persisted for months, has caused me tremendous physical and mental distress," Medrano wrote in her declaration. She experienced a severe stress-induced seizure while on administrative leave this spring. "Receiving a RIF notice during the government shutdown, on top of the previous RIF, has been traumatic and it will have a lasting impact on my health."

Christine Grassman, a 56-year-old vocational program specialist at the Office of Special Education and Rehabilitative Services, wrote that she's blind, her husband is also blind and not working, and she planned to work until retirement. "The idea of losing my job is both terrifying and devastating," she stated.

Daniel Ronneburg, president of AFSCME Local 1653 representing Federal Aviation Administration employees, received a life-saving kidney transplant just before the shutdown. Now furloughed, he fears losing health coverage if laid off. "If I lose my job and health care coverage due to a RIF during the ongoing shutdown, I will not be able to afford my post-surgery treatment for my kidney transplant," he wrote.

Political Calculations

The administration's approach has drawn sharp criticism. Union attorney Danielle Leonard highlighted comments OMB Director Vought made in a 2023 private speech where he said he wanted government bureaucrats to be "traumatically affected" to the point of not wanting to go to work.

"That's exactly what they are doing," Leonard told the court.

Vought indicated before the court order that layoff notices could reach "north of 10,000" employees during the shutdown. President Trump told reporters the administration would announce program closures and additional cuts, blaming Democrats for refusing to compromise on a deal to end the shutdown.

The shutdown, now exceeding two weeks and ranking as the second-longest on record, has left furloughed employees without paychecks. Many received partial payments earlier in October and are on track to miss their first full paycheck this week. OMB has circulated memos stating that back pay is not guaranteed for furloughed workers—another departure from historical practice.

Judge Illston is expected to hear arguments on October 28 about whether to extend the temporary restraining order into a longer-term preliminary injunction. The Trump administration has pushed back, arguing the court lacks jurisdiction and that unions haven't proven irreparable harm—despite extensive employee declarations describing medical crises, financial devastation, and severe psychological distress.

The administration characterizes these layoffs as pursuing the president's "priority programs, projects and activities," though unions argue they're using federal employees as "pawns to impose political pressure" on congressional opponents.

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