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Judge Will Block Hundreds of Federal Layoffs, Plans to Order Reinstatements Under Shutdown Law

A written ruling later today will set the timeline, with a possible brief pause to allow an appeal.

Overview

  • U.S. District Judge Susan Illston said layoffs at the State Department and Education Department affecting about 250 and 150 employees respectively cannot proceed while the case moves forward.
  • She said she intends to require the State Department, the Defense Department, the General Services Administration, and the Small Business Administration to reinstate roughly 300 workers separated during the shutdown.
  • The actions discussed in court would affect around 700 employees across multiple agencies, with the judge emphasizing the need to avoid further employment whiplash.
  • Her decision turns on the continuing resolution that ended the shutdown, which bars using federal funds to initiate, carry out, implement, or otherwise notice reductions in force through January 30.
  • The administration, citing Office of Management and Budget and Justice Department guidance, argues pre‑shutdown RIFs are exempt, and the judge indicated parts of her order may be stayed to permit an appeal.