Unions Force Trump Administration to End Shutdown Layoff Policy

The settlement resolves litigation triggered when the administration ordered agencies to implement reductions in force (RIFs) against staff whose programs conflicted with the president’s agenda. Approximately 4,200 employees across seven major departments—including the EPA, Education, and Homeland Security—had received layoff notices before a California federal judge initially intervened to block the actions.

Under the terms of the agreement, the Office of Management and Budget and the Office of Personnel Management must notify agencies within 30 days that the previous layoff guidance is void. Agencies are now required to remove blanket RIF authorizations from their contingency plans. Any future attempt to modify these plans to permit such layoffs will necessitate a 30-day notice period to unions and a public posting of the proposal.

This outcome marks a significant check on the broader efforts to reshape the federal workforce, an initiative led by OMB Director Russell Vought and aligned with the Project 2025 blueprint. While union leaders hailed the settlement as a vital victory for workers who maintain essential services, they remain wary. AFT president Randi Weingarten described the administration's strategy as a cynical pretext to target public employees, vowing that labor groups will continue to challenge similar tactics in court.