Overview

• A three-judge panel of the 9th US Circuit Court of Appeals denied the Trump administration’s bid to stay Judge Susan Illston’s May 22 order halting layoffs and restructuring at about 20 federal agencies.
• Judge Illston found that the February executive order establishing the Department of Government Efficiency under Elon Musk lacked statutory authority and exceeded presidential supervisory powers without congressional approval.
• At least 75,000 federal workers have accepted deferred resignation offers and thousands more probationary employees have been let go or placed on leave under the paused restructuring plan.
• In their majority opinion, Judges William A. Fletcher and Lucy Koh agreed that plaintiffs were likely to prevail on separation of powers grounds and noted the administration failed to show irreparable harm.
• The administration is expected to pursue an en banc rehearing or petition the US Supreme Court to lift the injunction and resume its workforce downsizing initiative.