Lawsuit aims to rule potential federal shutdown layoffs unlawful


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Summary

Federal shutdown lawsuit

Multiple federal unions have filed a lawsuit in federal court seeking to block the Trump administration from conducting mass layoffs if a government shutdown occurs.

Layoff threats and procedures

The Office of Management and Budget, led by Director Russell Vought, sent a memo to federal agencies advising them to prepare for Reduction in Force notices under certain circumstances.

Deviation from precedent

The unions claim that the Trump administration's layoff warnings deviate from the established practice of furloughs.


Full story

Several federal unions have filed a lawsuit to block the Trump administration from conducting any mass layoffs if the federal government shuts down. Members of the Trump administration have suggested that layoffs could happen if the shutdown goes into effect.

Lawsuit filed

The 31-page lawsuit was filed by the American Federation of Government Employees (AFGE) and several local chapters of the American Federation of State, County and Municipal Employees, more commonly known as AFSCME, in a federal court in San Francisco. The AFGE represents 800,000 federal workers.

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“Announcing plans to fire potentially tens of thousands of federal employees simply because Congress and the administration are at odds on funding the government past the end of the fiscal year is not only illegal – it’s immoral and unconscionable,” Everett Kelley, AFGE national president, said in a statement. “Federal employees dedicate their careers to public service – more than a third are military veterans – and the contempt being shown them by this administration is appalling.”

The lawsuit specifically names Russell Vought as a defendant. Vought is the director of the U.S. Office of Management and Budget and warned federal agencies to prepare for firings instead of furloughs.

Government workers are typically furloughed during shutdowns, meaning they’re temporarily out of work and not getting paid. Those workers then get back pay when the government reopens.

“Despite this well-established practice, the Trump administration has made unlawful threats to dismantle essential federal services and functions provided by federal personnel, deviating from historic practice and violating applicable laws, if a shutdown occurs,” the lawsuit reads.

The lawsuit also mentions White House press secretary Karoline Leavitt’s recent comments. When asked if there will be layoffs during a potential government shutdown, Leavitt replied, “there will be.”

“These actions are contrary to law and arbitrary and capricious, and the cynical use of federal employees as a pawn in Congressional deliberations should be declared unlawful and enjoined by this Court,” the suit reads.

Threats of layoffs

Politico obtained a copy of the memo sent from the Office of Management and Budget to federal agencies ahead of the potential shutdown. The memo tells agencies they “are directed to use this opportunity to consider Reduction in Force (RIF) notices” for federal employees who meet one of three requirements.

First, funding for their position ends with the shutdown. Second, another source of funding is not available. Third, if their position and projects are not “consistent with the President’s priorities.”

“Once fiscal year 2026 appropriations are enacted, agencies should revise their RIFs as needed to retain the minimal number of employees necessary to carry out statutory functions,” the memo reads.

That memo continued to blame Democrats for a possible shutdown despite Republicans controlling the White House and both chambers of Congress. While the GOP has both gavels of Congress and the Oval Office, they are short several members to pass a budget along party lines in the Senate. 

“If these mass firings take place, the people who keep our skies safe for travel, our food supply secure, and our communities protected will lose their jobs,” Lee Saunders, president of AFSCME, said in a statement. “We will do everything possible to defend these AFSCME members and their fellow workers from an administration hell-bent on stripping away their collective bargaining rights and jobs.”

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Why this story matters

A lawsuit by federal unions challenges the Trump administration's proposed mass layoffs of government workers during a potential shutdown, raising questions about workers' rights, government operations and adherence to legal precedent.

Federal worker protections

The unions' lawsuit centers on the rights and job security of federal employees, potentially setting new precedent for how workers are treated during government funding lapses.

Shutdown policies

The dispute highlights differences between traditional furlough practices and the Trump administration's suggested layoffs, which could affect essential government services and employee livelihoods.

Legal and political conflict

The legal action underscores ongoing tensions between federal unions and the Trump administration, as well as broader debates over political tactics and the rule of law during budget disputes.

SAN provides
Unbiased. Straight Facts.

Don’t just take our word for it.


Certified balanced reporting

According to media bias experts at AllSides

AllSides Certified Balanced May 2025

Transparent and credible

Awarded a perfect reliability rating from NewsGuard

100/100

Welcome back to trustworthy journalism.

Find out more

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