Updated October 15, 2025 at 8:14 PM EDT
Amidst an ongoing federal government shutdown, now entering its second week, a federal judge in San Francisco has temporarily halted the Trump administration’s latest attempt at layoffs.
In a recent court session, U.S. District Judge Susan Illston expressed her belief that the plaintiffs might successfully demonstrate that the administration’s actions are “both illegal and in excess of authority and is arbitrary and capricious.”
The lawsuit, initiated by the American Federation of Government Employees (AFGE) and the American Federation of State, County and Municipal Employees (AFSCME), represents over 800,000 federal workers.
The unions have accused the administration of leveraging federal employees to exert political pressure on its opponents in Congress. “The harm is now,” stated plaintiffs’ attorney Danielle Leonard, highlighting the emotional toll on employees.
Judge Illston has granted a temporary restraining order, pausing the layoffs and preventing further notices across more than 30 agencies.
The Trump administration’s lawyer, Elizabeth Hedges, focused on jurisdictional arguments rather than the merits of the case, claiming the plaintiffs had not shown “irreparable harm” absent a restraining order.
Judge Illston questioned the government’s lack of engagement with the legality of their actions, asking, “This hatchet is falling on the heads of employees all across the nation and you’re not even prepared to address whether that’s legal?”
In response to the unions’ brief, government attorneys had argued against any pause, citing efficiency in agency operations during the appropriations lapse. They stated, “A TRO would prevent agencies from taking steps to implement this policy priority.”
Recently, the Trump administration initiated a new wave of layoffs, known as reductions in force (RIFs), affecting over 4,000 federal employees across various agencies.
Trump’s Layoffs Target “Democrat-sponsored Programs”
The administration’s actions follow an OMB memo suggesting layoffs in programs not aligned with the President’s priorities. Trump has attributed the shutdown to Democrats and labeled it an “unprecedented opportunity” to restructure government.
Trump commented, “We’re ending some programs that we don’t want. They happen to be Democrat-sponsored programs, but we’re ending some programs that we never wanted and we’re probably not going to allow them to come back.”
The layoffs have impacted several federal agencies, including the Department of Education’s Office of Special Education and Rehabilitative Services, the Department of Energy’s Office of Energy Efficiency and Renewable Energy, and parts of the CDC.
More than half of the CDC employees who received layoff notices had these reversed due to “data discrepancies and processing errors,” as confirmed by HHS official Thomas Nagy in a court declaration.
Yolanda Jacobs, president of AFGE Local 2883, noted that HR staff at the CDC, who issued their own layoff notices, lost access to work resources while rescinding erroneous notices.
Unions Challenge Shutdown-based Program Cuts
The unions contend that the OMB’s directive to federal agencies to disregard authorizing statutes due to the appropriations lapse is illegal.
Judge Illston appeared to side with the unions, stating, “Overturning agency mandates Congress has put in place — they can’t do that.”
The unions also object to OPM’s guidance that allows RIF administration during the shutdown, arguing it breaches the Antideficiency Act.
Jurisdictional Dispute in Court
The lawsuit, initially naming OMB and OPM, was later expanded to include more federal agencies.
The Trump administration has contested the court’s jurisdiction, suggesting that such employment issues should be handled by the Merit Systems Protection Board, although its independence and functionality have been compromised.
The government’s attorney noted that not all defendant agencies have announced RIFs, using this to argue against a blanket pause.
Leonard countered, pointing to ongoing layoff preparations as evidence of the administration’s plans.
Judge Illston’s Role in Federal Employment Cases
Judge Illston has demanded an accounting of all layoffs affected by her order and compliance verification from the Trump administration, ahead of another hearing on October 28.
Previously, Illston had paused a large-scale government reorganization by the administration, a decision later overturned by the Supreme Court, allowing layoffs to resume while legality is assessed.
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