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.”