Overview

• A three-judge panel of the 9th U.S. Circuit Court of Appeals denied an emergency stay of Judge Susan Illston’s May 22 injunction halting the mass layoffs ordered in February.
• The court ruled that the executive order far exceeds presidential supervisory powers by bypassing Congress, reinforcing the requirement for legislative authorization on large-scale agency restructuring.
• Illston’s injunction bars the Department of Government Efficiency, led by Elon Musk, from directing job cuts or reorganizations at about 20 federal agencies.
• The downsizing initiative has prompted at least 75,000 deferred resignations and the termination of thousands of probationary employees, but all further personnel actions remain on hold.
• With its request for a stay denied, the administration is expected to petition the U.S. Supreme Court to lift the injunction and resume its federal workforce overhaul.