Trump Must Halt Layoffs at Three Small Agencies, Judge Says (2)

A Rhode Island District Judge has ordered the Trump administration to cease all layoffs at three small federal agencies.

Chief Judge John McConnell of the US District Court for the District of Rhode Island said in his ruling Tuesday that the states proved they would be irreparably harmed by President Donald Trump‘s March 14 executive order to shutter and shrink several small agencies, granting their motion for a preliminary injunction while the litigation is pending.

The coalition of states sued the administration over Trump’s executive order to eliminate the operations of the Federal Mediation and Conciliation Service, the Institute of Museum and Library Services, and the Minority Business Development Agency to the “maximum extent.”

McConnell in his opinion Tuesday called the execution of the directive “arbitrary and capricious” and that it ignores the “unshakable principles” that Congress “makes the law and appropriates funds.”

The injunction is another blow to Trump’s efforts to drastically alter the organization of the federal government.

The April 4 complaint alleged that the gutting of these services violates the Administrative Procedure Act and the US Constitution by bypassing Congress.

According to the complaint, the FMCS was reduced from 200 employees to 15 by the executive order, the IMLS had to place 85% of its staff on administrative leave, and the MBDA is left with just five employees after the layoffs.

Oral arguments for the injunction motion focused on the states’ standing to seek relief and the standard of harm required to issue an emergency order.

McConnell said in the opinion that the states had cleared their legal burden of demonstrating irreparable harm, turning down the government’s arguments that the stated harms were prospective in nature.

“It is unclear how it is speculative for the States to precipitate delays in funds and services from the MBDA—and harms flowing therefrom—when the unrebutted record reveals that MBDA’s workforce has been reduced to zero,” the judge said, adding that the administration presented no evidence for how the MBDA could administer funding to the states without any of its staff.

Rhode Island Attorney General Peter Neronha called the injunction a “critical win.”

“When the Trump administration attempts to dismantle these agencies, it is making a targeted, concerted effort to prohibit everyday people from accessing their full potential,” he said in a statement. “This administration also knows that through suppressing and stifling access to opportunity, they can maintain and expand their power. We won’t let them.”

Representatives for the Department of Justice didn’t immediately respond to requests for comment.

McConnell also denied the administration’s motion to delay the order by seven days.

The plaintiff states were represented in court by the Rhode Island Attorney General’s lawyers. The administration is represented by the Department of Justice.

The case is State of Rhode Island v. Trump, D.R.I., No. 1:25-cv-00128, 5/6/25.