On May 30, a U.S. appeals court upheld a ruling blocking the Trump administration’s plans for massive federal layoffs and agency restructuring. The 9th U.S. Circuit Court of Appeals denied the administration’s request to stay a lower court order, which had prohibited extensive job cuts affecting approximately 20 federal agencies. U.S. District Judge Susan Illston had ruled that the president could only restructure agencies with congressional authorization, a stance supported by unions and nonprofits.
The court’s 2-1 decision emphasized that the Trump administration failed to demonstrate any irreparable harm from the lower court’s ruling. Judge William Fletcher, along with Judge Lucy Koh, argued that the executive order overstepped presidential powers. Dissenting Judge Consuelo Callahan believed the administration would likely prevail on appeal and had experienced significant harm from the imposed restrictions.
The ruling marks a significant setback for an overhaul heavily influenced by Elon Musk, a Trump ally. Illston’s decision not only blocked layoffs but also prevented the Department of Government Efficiency from ordering structural changes in federal agencies. The Trump administration indicated plans to appeal to the U.S. Supreme Court, arguing that the ruling unjustly undermined executive power.
The lawsuits are part of a broader challenge to the administration’s reforms, with previous court cases highlighting violations of labor and privacy laws tied to mass terminations. The implications of Illston’s ruling could have severe consequences for various programs, exemplified by her mention of potential layoffs at significant federal offices supporting labor research and early childhood education. With ongoing legal battles, the future of the proposed government restructuring remains uncertain.
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