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Federal Layoffs Continue

Dailyfed Staff

July 16, 2025

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Health and Human Services

On July 14, 2025, the U.S. Department of Health and Human Services (HHS) finalized part of its planned layoffs, following a Supreme Court ruling on July 8 that allowed the department to proceed with its reduction-in-force (RIF) plans. Initially announced on April 1, 2025, the layoffs affected approximately 10,000 employees across agencies like the Centers for Disease Control and Prevention (CDC), Food and Drug Administration (FDA), and National Institutes of Health (NIH), with another 10,000 employees departing through voluntary separation incentives. A preliminary injunction issued by U.S. District Judge Melissa DuBose on July 1, 2025, protects a narrow group of employees at the CDC, FDA’s Center for Tobacco Products, Office of Head Start, and Office of the Assistant Secretary for Planning and Evaluation, halting their layoffs pending further legal review.

Department of Education

On July 14, 2025, the Supreme Court lifted a lower court’s injunction, allowing the Department of Education to proceed with laying off nearly 1,400 employees, reducing its workforce from 4,133 to approximately 2,183. This action aligns with President Donald Trump’s campaign promise to dismantle the department. Notices sent within two hours of the ruling confirmed that affected employees would be let go by August 1, 2025. The layoffs followed a March 2025 announcement and a buyout program offering up to $25,000, with about 300 employees opting for voluntary separation. 

Federal Judge Continues to Challenge RIF Plans

On July 8, 2025, the Supreme Court lifted an injunction issued by U.S. District Judge Susan Illston, allowing the Trump administration to proceed with widespread reductions in force (RIFs) across federal agencies. The injunction, originally issued on May 22, 2025, had temporarily blocked mass layoffs at 22 federal agencies following President Trump’s February 11, 2025, executive order directing agencies to prepare for large-scale workforce reductions. The Supreme Court’s ruling clarified that it addressed only the legality of the executive order itself, not the specific agency RIF plans.

Judge Illston, based in the Northern District of California, issued an order on July 9, 2025, emphasizing that the legality of individual agency workforce reduction plans remains under scrutiny. She stated, “The content of those individual plans thus remains squarely at issue in this case,” signaling her intent to examine whether these plans comply with federal statutes. This follows her earlier rulings, which argued that large-scale reorganizations require congressional approval, a position partially overturned by the Supreme Court. The Trump administration had disclosed that 40 RIF actions across 17 agencies were paused by Illston’s May injunction.

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