Trump's planned layoffs remain on hold following an appeals court decision, potentially settling for a Supreme Court hearing.

Federal Court Halts Trump Administration's Mass Layoffs at Major Agencies

In a significant ruling, the U.S. Court of Appeals for the Ninth Circuit has barred most major federal agencies from issuing mass layoffs indefinitely. The ruling comes after the Trump administration sought to implement Reductions in Force (RIFs) as part of its workforce reduction plans.

The court's decision, made in a 2-1 majority, was in favour of unions, municipalities, and advocacy groups that sued over the workforce reduction plans. Judge William Fletcher, who led the majority, suggested that the Trump administration has not made any compelling argument for the necessity of the RIFs.

The ruling prevents most reductions in force and agency reorganizations from taking place, affecting a wide range of federal agencies. These include the Departments of Agriculture, Commerce, Energy, Health and Human Services, Housing and Urban Development, Interior, Labor, State, Treasury, Transportation, Veterans Affairs, Office of Management and Budget, Office of Personnel Management, Department of Government Efficiency, AmeriCorps, Peace Corps, Environmental Protection Agency, General Services Administration, National Labor Relations Board, National Science Foundation, Small Business Administration, and Social Security Administration.

However, it's important to note that the order does not apply to all federal agencies. The court did not find any individualized need or purpose for the sheer volume of RIFs, and the court found President Trump likely acted outside his legal and constitutional powers in the workforce reduction plans.

The Trump administration had initially brought the case on an emergency basis, seeking a stay of a district court ruling. Their request for a stay was denied by the court. The administration is expected to once again pursue relief before the Supreme Court.

In her opinion, Judge Consuelo Callahan believes the president has the authority to manage the executive branch, including terminating and laying off employees. However, she dissents from the majority's decision to prevent layoffs and agency reorganizations.

Interestingly, the court did not find the Trump administration's argument that it would suffer injury from having to continue paying employees it wants to lay off persuasive. The court found that irreparable injury is likely to occur if the RIFs are not implemented, the plaintiffs are likely to succeed on the merits of the case, and the balance of interests do not favor a stay.

This ruling comes at a time when the Supreme Court is expected to decide on the legality of Donald Trump's tariffs, with lower courts having ruled most of them illegal and the case now potentially reaching the Supreme Court for a final decision.

Trump's planned layoffs remain on hold following an appeals court decision, potentially settling for a Supreme Court hearing.