Appeals panel leaves layoff injunction in place as Trump's RIF plans likely head to Supreme Court

An appeals court has allowed a pause on all layoffs at most major federal agencies to remain in place, rejecting the Trump administration’s bid to block a lower court’s injunction and likely sending the matter to the Supreme Court for final adjudication. 

A ruling preventing most reductions in force and agency reorganizations from taking place will continue indefinitely after the U.S. Court of Appeals for the Ninth Circuit ruled—in a 2-1 decision—in favor of the unions, municipalities and advocacy groups that sued over the workforce reduction plans. The Trump administration brought the case on an emergency basis, seeking a stay of a district court ruling that had found President Trump likely acted outside his legal and constitutional powers. 

The majority, led by Judge William Fletcher, detailed several agencies that have experienced, or are set to go through, significant layoffs. It found irreparable injury is likely to occur, the plaintiffs are likely to succeed on the merits of the case and the balance of interests do not favor a stay. 

The Trump administration argued it would suffer injury from having to continue paying employees it wants to lay off, but the court found the argument unpersuasive. It also found the Merit Systems Protection Board and Federal Labor Relations Authority, entities to which the government said the plaintiffs had to take their case, do not have the authority to "address the type of constitutional and statutory claims raised by plaintiffs." 

Fletcher further suggested the Trump administration has not made any compelling argument for the necessity of the RIFs. 

“Defendants have yet to offer any evidence pointing to any explanation or justification for these sweeping RIFs beyond a general and undifferentiated desire for a reduction in the number of people on the government’s payroll,” he wrote. “This is not surprising, as it is difficult to imagine how the sheer volume of RIFs could be explained by any individualized need or purpose of a given agency.” 

In a dissenting opinion, Judge Consuelo Callahan said the president has the authority to govern the executive branch as he sees fit, including by empowering agencies to terminate and layoff employees. 

The Trump administration previously asked the Supreme Court to block a temporary restraining order that initially paused the RIF plans, but subsequently withdrew that appeal after the current preliminary injunction replaced the TRO. It is now expected to once again pursue relief before the Supreme Court. 

The current order applies to the departments of Agriculture, Commerce, Energy, Health and Human Services, Housing and Urban Development, Interior, Labor, State, Treasury, Transportation and Veterans Affairs, as well as also the Office of Management and Budget, Office of Personnel Management, Department of Government Efficiency, AmeriCorps, Peace Corps, the Environmental Protection Agency, the General Services Administration, the National Labor Relations Board, the National Science Foundation, the Small Business Administration and the Social Security Administration.