State Department Layoff Notices Can Remain in Effect, Judge Says

The Trump administration doesn’t need to rescind layoff notices issued to State Department workers, a federal judge said, determining they fall outside the scope of a freeze on shutdown-related workforce reductions.

In a status conference Friday, Judge Susan Illston of the US District Court for the Northern District of California said the reduction-in-force notices at issue predate her preliminary injunction, as well as a congressional spending deal that ended the 43-day shutdown and restored the Trump administration’s cuts.

“This is a very close call, and I’ve gone back and forth on it since the issue was raised,” Illston said. “I don’t think my order, or, frankly, the CR, calls for their rescission.”

A coalition of unions had sued to block the Trump administration’s workforce cuts issued during the shutdown. Illston’s preliminary injunction remains in effect for terminations within its scope, along with the congressional spending agreement that reversed the layoffs, until Jan. 30.

During the hearing, Illston said she “cannot understand why the government is fighting about this,” since the administration could issue new notices and fire employees after a 180-day waiting period, rather than dismissing them immediately.

“That’s a really brutal position to be exploring,” she said.

The case is AFGE, AFL-CIO v. OMB, N.D. Cal., No. 3:25-cv-08302, hearing held 1/9/26.