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MSPB Facing Processing Challenges

Dailyfed Staff

July 14, 2025

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The Merit Systems Protection Board (MSPB) has experienced significant challenges in 2025, driven by workforce reduction initiatives under the Trump administration and related legal challenges. 

Surge in Appeals Due to Federal Layoffs:

The MSPB has seen a dramatic increase in appeals, with a reported 2,145% spike in cases challenging improper employment actions. So far, FY2025 has seen nearly 12,000 federal employees file appeals. To put this in context, 5,677 appeals were filed in FY 2024. This surge is largely attributed to mass terminations and reductions-in-force (RIFs) initiated by the Trump administration’s Department of Government Efficiency (DOGE) layoffs. Over 2,000 cases were received in a two-week period alone, raising concerns about timely responses for federal employees challenging wrongful terminations.

Backlog Reduction Efforts:

The MSPB has been working to clear a backlog of approximately 3,800 appeals cases inherited from a period without a quorum (prior to 2022). By March 31, 2025, the MSPB had resolved over 2,500 of these cases (about 66% of the backlog) and decided 350 newer cases. The board expects to clear the inherited inventory by the end of fiscal year 2025 (September 30, 2025), despite the influx of new cases and a decline in staffing levels. 

Class Action Appeals for Probationary Employees:

A coalition of law firms has pursued class action appeals at the MSPB to challenge the mass terminations of probationary and trial employees across agencies. These appeals aim to cover all affected employees within specific agencies, with decisions pending on whether they can proceed on a class basis. This trend reflects growing legal pushback against broad termination policies, particularly for employees with limited appeal rights due to their probationary status.

Operational and Regulatory Updates:

The MSPB has introduced regulatory changes to improve efficiency, including updates to adjudicatory processes and a new digital system for information collection under the Paperwork Reduction Act, announced in January and May 2025. The board also established a modified system of records for reasonable accommodations (MSPB-3) under the Privacy Act in January 2025. These updates aim to streamline operations amid increased caseloads.

Leadership and Legal Challenges:

In February 2025, President Trump removed MSPB Chairwoman Cathy Harris, a Democrat, and demoted Vice Chairman Ray Limon, appointing Henry J. Kerner as acting chairman. Harris sued, alleging her removal was illegal, and a U.S. District judge reinstated her temporarily on February 18, 2025, followed by a permanent injunction on March 4, 2025. Harris subsequently ordered the reinstatement of 5,600 USDA employees fired during the 2025 federal mass layoffs. However, on March 27, 2025, a D.C. Circuit panel stayed the injunction, suggesting the Trump administration might succeed in arguing that statutory restrictions on removing MSPB members are unconstitutional. This ongoing legal battle highlights tensions over the MSPB’s independence and its role in protecting federal employees.

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