A federal judge has announced plans to temporarily halt the Trump administration’s initiative to dismiss federal employees during the ongoing government shutdown, effectively providing momentary protection for thousands of government workers who have faced abrupt uncertainty. The decision, though provisional, introduces a significant legal pause in a highly contentious labor dispute surrounding the administration’s workforce reduction strategy amid the funding impasse.
The lawsuit at the center of this dispute was brought forward jointly by two of the nation’s largest public sector unions—the American Federation of State, County, and Municipal Employees (AFSCME) and the American Federation of Government Employees (AFGE). Filed in the U.S. District Court for Northern California, the case contends that the administration’s recent termination actions at multiple federal departments are not merely ill-advised but legally impermissible. The complaint explicitly argues that the government is unlawfully dismissing employees under the guise of the shutdown and misusing the cessation of federal funding as a fabricated justification for conducting layoffs, which should not legally occur during such a period.
According to a report first published by Bloomberg Law, Judge Susan Illston, who presides over the matter, issued a temporary restraining order during a court hearing held on Wednesday. This ruling effectively prevents any further layoffs from proceeding until the core legal questions can be examined more thoroughly. The clerk of the court later confirmed this ruling to Business Insider, verifying that the order had indeed gone into immediate effect, thereby freezing all pending reduction-in-force notifications.
In a formal public statement, AFSCME President Lee Saunders characterized the judge’s decision as a crucial affirmation of workers’ rights. He emphasized that the ruling clearly recognized the likelihood that the threatened mass dismissals would violate existing labor laws and, in turn, restrained the administration from continuing the issuance of layoff notices. Saunders underscored that this intervention not only shields affected employees but also stands as a broader reminder that such large-scale cuts must adhere strictly to lawful processes.
An internal document released by the Office of Management and Budget (OMB) on October 10 and reviewed by Business Insider provided valuable insight into the scope of the layoffs. The document revealed that between 4,132 and 4,232 federal employees were designated for dismissal under reduction-in-force procedures, with several already having received official notices that very day. The proposed cuts span a wide range of departments, including Commerce, Education, and Energy, as well as key social and domestic agencies such as Health and Human Services (HHS), Housing and Urban Development, Homeland Security, and the Treasury.
However, individuals within the administration cautioned that these figures represent only a temporary snapshot of a fluid and evolving situation. They indicated that additional workforce reductions are anticipated if the shutdown continues, and that the full extent of the layoffs has yet to materialize. During a Wednesday broadcast of The Charlie Kirk Show, OMB Director Russell Vought elaborated further, suggesting that the total number of employees ultimately affected could approach 10,000, thereby illustrating the magnitude and reach of the administration’s plan.
Vought’s comments align with earlier communications from OMB issued in a memorandum distributed before the shutdown began. That directive instructed federal agencies to evaluate the possible dismissal of employees working in programs deemed misaligned with the President’s stated priorities. The memo’s language, while bureaucratic in nature, implied that cost savings and political consistency were driving the administration’s decision-making on personnel matters. A spokesperson for Health and Human Services later elaborated that several divisions within the department have already received formal reduction-in-force notifications, asserting that these actions are a direct consequence of what the spokesperson described as the Democrat-led shutdown and its fiscal repercussions.
Since the closure of many federal operations at the start of the shutdown, Business Insider has conducted extensive outreach, interviewing roughly two dozen federal employees across multiple agencies. Their accounts have revealed a fractured and uncertain employment landscape — thousands have already lost their positions, while others remain in limbo, either furloughed without pay or continuing to perform essential duties despite the absence of guaranteed compensation. This evolving situation underscores the growing human toll of the political standoff and the precarious position of civil servants caught in its wake.
The Trump administration, following this temporary judicial decree, retains the legal opportunity to appeal the restraining order. That process would permit an appellate court to review Judge Illston’s decision and potentially reinstate the administration’s authority to pursue the layoffs if found legally permissible. For now, however, the court-ordered freeze remains in place, delaying the implementation of thousands of reductions and offering federal workers a fleeting reprieve as the larger constitutional and administrative issues are adjudicated.
This remains a developing story, and further updates are expected as the case progresses and new filings are made. Observers continue to watch closely, recognizing that its outcome could have profound implications not only for furloughed employees but also for the interpretation of executive authority during government shutdowns.
Sourse: https://www.businessinsider.com/federal-worker-firings-pause-temporary-restraining-order-government-shutdown-2025-10
