Agency layoffs could potentially face continued postponement, as suggested by the judge.

In a significant development, a federal judge, Susan Illston, has suggested she will issue a longer-term injunction banning the Trump administration from implementing layoffs across various government departments and agencies.

The temporary restraining order, in place since earlier this month, prevents agencies from implementing their Agency Reduction in Force (RIF) and Reorganization Plans. This order applies to numerous government bodies, including the Office of Management and Budget (OMB), the Office of Personnel Management (OPM), the Department of Agriculture, Commerce, Energy, Health and Human Services, Housing and Urban Development, Interior, Labor, State, Treasury, Transportation, Veterans Affairs, AmeriCorps, Environmental Protection Agency (EPA), General Services Administration (GSA), National Labor Relations Board (NLRB), National Science Foundation (NSF), Small Business Administration (SBA), and Social Security Administration.

The hearing primarily concerned the scope of Illston's potential preliminary injunction and debating the merits of the case. Danielle Leonard, an attorney for the plaintiffs, presented evidence of OMB and OPM overruling agencies' RIF plans, while Andrew Bernie, a Justice Department attorney, stated that OMB and OPM do not view their roles as "substantively second guessing agencies' determinations."

Judge Illston believes that the evidence suggests the recent actions of the executive branch usurp the constitutional powers of Congress. She stated, "Every large-scale government reorganization effort in recent memory has required congressional approval." Illston also believes that the president may not initiate a large-scale executive branch reorganization without partnering with Congress.

The temporary restraining order was put in place in response to President Trump's executive order that precipitated the layoff plans. However, the Trump administration has already appealed Illston's restraining order to both the Ninth Circuit Court of Appeals and the Supreme Court, but neither entity has issued a ruling as yet.

In a potential expansion of her order, Judge Illston suggested she may expand it to apply retroactively to benefit those already laid off. However, she also mentioned that she may pause enforcement immediately to avoid employees "ping ponging" back and forth. Agencies have continued some reorganization actions, such as the Interior Department's efforts to consolidate functions, and have moved forward with the re-firings of employees in their probationary periods. Some agencies have notified employees subject to layoffs that those efforts were paused.

Despite some agencies not complying fully with Illston's order, as they have not stopped all layoff efforts, Judge Illston believes plaintiffs will likely succeed on the merits of their claims challenging the reductions in force. She also stated that agencies may be required to reinstate to full working status those who have received RIF notices but are still on paid administrative leave waiting for their terminations to take effect.

Bernie suggested that if Illston issues an injunction, it should be limited to employees who are part of the unions bringing the cases. However, Judge Illston's intended longer-term injunction, if issued, would have broader implications, potentially halting the Trump administration's layoff plans across multiple government departments.