Updated October 15, 2025 at 10:22 AM EDT
As the federal government shutdown continues into its second week, a critical legal battle is unfolding in a San Francisco courtroom. U.S. District Judge Susan Illston is set to hear arguments concerning the Trump administration’s recent federal employee layoffs, a move challenged by major unions representing thousands of workers.
The American Federation of Government Employees (AFGE) and the American Federation of State, County and Municipal Employees (AFSCME) have filed a case against the administration, claiming it uses the shutdown for political gain. They seek a temporary restraining order to halt ongoing layoffs and prevent further notices.
“It’s an illegal abuse of power designed to punish patriotic civil servants and put pressure on Congress,” AFGE President Everett Kelley remarked in an interview with NPR’s Morning Edition.
The Trump administration, however, asserts that the court is not the appropriate venue for this dispute. They argue the president’s measures are within his executive authority, and any interference would impede agency operations.
“The President, through [the White House Office of Management and Budget], has determined that agencies should operate more efficiently,” the administration stated, emphasizing that a temporary restraining order (TRO) would disrupt policy implementation.
The situation intensified as recent reductions in force (RIFs) were initiated, affecting over 4,000 employees across various agencies. A status update from Stephen Billy of the OMB indicated these numbers might fluctuate as the situation evolves.
Trump says layoffs affect “Democrat-sponsored programs”
The unions’ lawsuit was triggered by a memo from the Office of Management and Budget (OMB), suggesting layoffs in programs misaligned with Trump’s agenda. The president has repeatedly blamed Democrats for the shutdown, framing the layoffs as necessary cuts to certain federal jobs.
“We’re ending some programs that we don’t want. They happen to be Democrat-sponsored programs,” Trump explained to reporters, framing the shutdown as an opportunity to reshape the government.
The latest layoffs impact the Office of Special Education and Rehabilitative Services, the Office of Fair Housing and Equal Opportunity, and other departments, including the CDC. Notably, many CDC employees had their layoff notices rescinded due to errors.
Unions: Trump cannot use shutdown to cut programs
The unions argue that OMB’s guidance unlawfully overrules Congress’s mandates, a stance they say exceeds the agency’s authority. They claim the Office of Personnel Management’s (OPM) advice violates the Antideficiency Act by directing employees to work during the shutdown for RIFs.
They urge the court to declare the OMB and OPM actions as arbitrary and invalidate any resulting measures.
Trump administration says the court lacks jurisdiction
In response, the administration maintains that the court lacks jurisdiction, suggesting that employment issues belong to the Merit Systems Protection Board, despite its current limitations. They also argue that RIF decisions adhere to proper procedures.
For Judge Illston, another chance to weigh in on federal layoffs
Judge Illston previously paused Trump’s government reorganization efforts, a decision the Supreme Court later lifted. The ongoing case now presents another opportunity for her to influence the federal workforce landscape as agencies navigate the contentious RIF process.
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