A federal judge has temporarily halted the U.S. State Department’s plan to lay off nearly 2,000 employees as part of a sweeping reorganization. U.S. District Judge Susan Illston ruled from San Francisco on Friday that the department's restructuring is subject to her earlier injunction barring federal agencies from implementing mass layoffs ordered by former President Donald Trump.
The State Department had claimed its plan, submitted to Congress in April, was independent of Trump’s February executive order. However, Judge Illston found that key documents—including the department’s budget proposal—directly referenced the order, placing it within the scope of her original ruling. “If things proceed consistent with that executive order… they are barred,” she said.
The ruling came during a lawsuit filed by unions, nonprofits, and municipalities opposing Trump’s directive to overhaul federal agencies. Illston previously blocked 20 federal agencies from moving forward with downsizing plans pending the case’s outcome. The Department of Justice, defending the State Department, said layoff notices scheduled for Saturday would be paused.
The agency has stated that its restructuring plan aims to streamline over 300 offices by July 1, but has not commented on how the lawsuit might affect that timeline. Deputy chief of staff Daniel Holler claimed the initiative was led by Secretary of State Marco Rubio and wrongly included references to Trump’s order.
Judge Illston reiterated that federal restructuring must have Congressional approval. The Trump administration has appealed her ruling to the Supreme Court.
The case marks a significant legal challenge to executive overreach and federal employee rights, especially amid the controversial involvement of Elon Musk, who had supported the overhaul but has since distanced himself from Trump. The situation remains fluid as legal proceedings continue.


Costco Faces Class Action Lawsuit Over Tariff Refunds as Supreme Court Strikes Down Trump's IEEPA Tariffs
New Zealand Tightens Immigration Laws to Combat Crime and Asylum Abuse
Denmark Election 2026: Frederiksen Eyes Third Term Amid Trump-Greenland Tensions
Trump Votes by Mail Despite Calling It "Cheating" as Democrat Wins Mar-a-Lago District
U.S. Deploys Elite 82nd Airborne Troops to Middle East Amid Iran Tensions
Trump Administration Opens Two New Investigations Into Harvard Over Discrimination and Antisemitism
Bolsonaro Hospitalized in ICU with Bronchopneumonia Amid Calls for House Arrest
Anthropic Sues Pentagon Over AI Blacklist, Citing Free Speech Violations
U.S. Pulls Back Proposed AI Chip Export Rule Amid Policy Uncertainty
CK Hutchison's Panama Ports Dispute Escalates as Arbitration Claims Surpass $2 Billion
Microsoft Backs Anthropic in Legal Fight Against Pentagon's AI Blacklist
Federal Judge Blocks Trump Administration's Move to End Temporary Protected Status for Somali Immigrants
DOJ Antitrust Chief Rejects Political Fast-Track for Paramount-Skydance Deal
Brazil's Top Court Blocks Trump Official's Visit to Imprisoned Bolsonaro
Supreme Court Backs GOP Lawmaker in New York Redistricting Fight Ahead of Midterms 



