Federal Judge Continues to Challenge RIF Plans
On July 8, 2025, the Supreme Court lifted an injunction issued by U.S. District Judge Susan Illston, allowing the Trump administration to proceed with widespread reductions in force (RIFs) across federal agencies. The injunction, originally issued on May 22, 2025, had temporarily blocked mass layoffs at 22 federal agencies, including the State Department, following President Trump’s February 11, 2025, executive order directing agencies to prepare for large-scale workforce reductions. The Supreme Court’s ruling clarified that it addressed only the legality of the executive order itself, not the specific agency RIF plans.
Judge Illston, based in the Northern District of California, issued an order on July 9, 2025, emphasizing that the legality of individual agency workforce reduction plans remains under scrutiny. She stated, “The content of those individual plans thus remains squarely at issue in this case,” signaling her intent to examine whether these plans comply with federal statutes. This follows her earlier rulings, which argued that large-scale reorganizations require congressional approval, a position partially overturned by the Supreme Court.
The Trump administration had disclosed that 40 RIF actions across 17 agencies were paused by Illston’s May injunction. A coalition of federal employee unions, local governments, and nonprofit organizations filed an urgent request post-Supreme Court decision, demanding that the administration submit these plans for judicial review. On July 9, Illston ordered the administration to respond by July 14, 2025, and indicated she is inclined to require full disclosure of the plans, rejecting claims of deliberative process privilege. She noted that if the RIFs were paused by her injunction, final decisions must have been made, undermining arguments for withholding them.
The State Department, which was one day away from issuing layoff notices before Illston’s initial intervention, moved forward with those plans on July 11, affecting approximately 1,350 employees: 1,107 civil service employees and 246 foreign service officers. On July 10, while traveling in Malaysia, Secretary of State Marco Rubio confirmed to reporters, “We’ve been ready to implement it pending a court decision, which now has been reached. There’s some timing associated with how you do that, but our intent is to move forward with the plans that we’ve notified Congress of weeks ago.”
The administration has argued that the president has inherent authority under Article II of the Constitution to direct RIFs without congressional approval, a stance supported by the Supreme Court’s ruling. However, Illston’s ongoing review of individual agency plans could lead to further legal challenges, particularly if they are found to violate statutory mandates or civil service protections. Federal employee unions and other plaintiffs continue to argue that these layoffs threaten critical public services and bypass Congress’s role in agency restructuring.
Litigation is expected to continue as Illston examines the agency plans, with potential appeals to the Ninth Circuit or back to the Supreme Court if further injunctions are issued. For now, federal employees await the administration’s next steps as the legal battle over the scope of executive power persists. Reach out to a Federal Retirement Consultant (FRC®) who can give you a comprehensive benefits analysis and help you financially prepare for whatever comes next.
