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Supreme Court Clears Path for Broad Federal Layoffs as States Challenge $6.8 Billion School Funding Freeze

The ruling unleashes workforce reductions across more than a dozen agencies with Democratic-led states challenging a hold on $6.8 billion in federal K-12 grants.

FILE - The Supreme Court is seen on Capitol Hill in Washington, Dec. 17, 2024. (AP Photo/J. Scott Applewhite, File)
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Overview

  • The Supreme Court lifted nationwide injunctions that had blocked President Trump’s plan to cut tens of thousands of jobs across about 17 federal agencies.
  • The Education Department moved forward with its reduction-in-force plan, laying off 1,378 employees after the court’s order.
  • The State Department announced it would cut more than 1,300 employees and the Department of Health and Human Services plans to trim around 10,000 jobs.
  • Linda McMahon’s Education Department intends to redistribute core functions—such as student loans and civil rights enforcement—to other federal agencies.
  • Attorneys general from 24 states and the District of Columbia filed suit in Rhode Island alleging the administration unlawfully froze $6.8 billion in K-12 funding without following the Impoundment Control Act.