U.S. District Judge Susan Illston issued a temporary restraining order (TRO) halting the Trump administration’s plan to lay off thousands of federal employees during the ongoing government shutdown. The order freezes both new reduction-in-force (RIF) notices and enforcement of existing notices across more than 30 agencies, while the court reviews the merits.
Why the court intervened
The judge found unions showed a strong likelihood of success on claims that the administration was using the funding lapse to bypass statutory limits and long-standing civil-service procedures. Public statements from senior officials and the sequencing of notices during a shutdown weighed against the government’s position, suggesting the move was arbitrary and politically driven rather than a bona-fide shutdown necessity.
Who sued—and on what grounds
The American Federation of Government Employees (AFGE) and allied unions argued that mass layoffs are not an “essential” function during a funding lapse and that agencies must follow civil-service law even under shutdown conditions. They asked the court to restore the status quo until a full hearing, contending that irreversible job loss would cause immediate harm to employees and critical services.
How deep the first wave of cuts went
Before the TRO, agencies disclosed roughly 4,000+ layoff notices with plans that could expand past 10,000 if the shutdown persisted. According to OMB filings and agency briefings:
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Treasury: ~1,446 notices (about one-quarter of the first wave).
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Health and Human Services (HHS): initially 1,100–1,200, later revised downward by the department.
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Education and Housing and Urban Development (HUD): 400+ each.
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Commerce, Energy, Homeland Security (including CISA): ranges of 176–315 per agency.
The order now pauses those actions and bars further implementation steps during the shutdown.
What the TRO requires right now
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No new RIFs tied to the shutdown and no processing of the Oct. 10 notice batch.
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Disclosure: agencies must provide the court a list of all RIF plans, actual or imminent, within two business days.
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Coverage: applies to programs and activities where the suing unions represent employees—spanning 30+ agencies.
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Appeal expected: the Justice Department signaled plans to challenge the order.
Why layoffs during shutdowns are unusual
Historically, shutdowns lead to furloughs and deferred pay, not permanent workforce reductions. The administration’s RIF push during an appropriations lapse is without modern precedent, which is part of why the court stepped in and why unions argue the plan circumvents Congress’s power of the purse.
The shutdown backdrop: stalled votes, rising pressure
The shutdown began October 1 and has entered week three. The Senate has now failed eight and then nine times to advance a short-term funding bill, leaving agencies without appropriations and sharpening partisan blame. Republicans push a “clean” stopgap; Democrats seek to attach health-care and other provisions.
The administration’s position in court
Government lawyers argued unions should first go to the federal labor board and that the executive has discretion to reorganize during fiscal emergencies. The court rejected immediate deference, noting procedural defects and apparent political targeting in how and where the cuts were initiated.
What’s at stake for agencies and the public
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Operational continuity: Pausing RIFs averts abrupt losses in finance, health, education, housing, and cybersecurity functions while the shutdown drags on.
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Workforce stability: The order prevents forced separations that could take months to unwind if later found unlawful.
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Legal clarity: The case will test how far an administration can go to reshape the civil service under the cover of a funding lapse.
What to watch next
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Appellate action: Any emergency motion to narrow or lift the TRO and the timeline for a preliminary-injunction hearing.
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Agency compliance: How quickly departments halt RIF processing and deliver plan inventories to the court.
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Hill dynamics: Whether the pause eases or hardens negotiating positions in the Senate as votes continue to fail.
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Union strategy: AFGE and allies will press for full reversal of notices and may seek broader relief covering any future shutdown-tied RIFs.
The TRO halts an unprecedented attempt to lay off thousands of federal workers in the middle of a shutdown, signaling serious legal doubts about motive and method. For now, employees get temporary relief, agencies regain operational breathing room, and the administration must defend its downsizing strategy in court—while the broader funding standoff remains unresolved.
