Submitted by Cheryl Dowd on
Judicial Action

American Federation of Government Employees v. U.S. Office of Management and Budget (2025) - Layoffs During Government Shutdown

Description  

A lawsuit was filed in the United States District Court, Northern District of California by unions representing federal employees against the Office of Management and Budget (OMB) and related federal agencies, asserting that the executive branch violated federal law by directing or threatening mass terminations of federal employees during the ongoing federal government shutdown.

On October 10, 2025, approximately 500 employees of the U.S. Department of Education were furloughed, significantly affecting key offices, including the Office of Postsecondary Education and the Office of Special Education and Rehabilitative Services. The plaintiffs sought a Temporary Restraining Order (TRO) to immediately halt further layoffs and prevent the continuation of shutdown-related personnel actions.

On October 28, 2025, the court granted a preliminary injunction, a longer-lasting court order, halting further shutdown-related layoffs and pausing previously issued layoff notices until the case is resolved.

The court found that the unions were likely to succeed on their claims that the Office of Management and Budget (OMB) and Office of Personnel Management (OPM) acted unlawfully under the Administrative Procedure Act (APA). It determined that the agencies’ actions, directing or implementing layoffs during a shutdown, potentially targeting employees by political affiliation, appeared arbitrary, capricious, and without lawful basis. To prevent irreparable harm to federal employees and preserve the status quo while the case proceeds, the court issued a preliminary injunction under 5 U.S.C. § 706(2), halting further shutdown-related layoffs.

This description will be updated when a final court decision is made on the merits.

Action to be taken

  • Monitor federal updates and court developments.
  • Assess potential delays in agency operations or support.
  • Communicate regularly with federal program contacts.
  • Document any shutdown-related impacts on institutional activities.

Ruling Date

  • October 28, 2025  - Preliminary Injunction

Resources

American Federation of Government Employees v. U.S. Office of Management and Budget (2025) Layoffs During Shutdown