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Federal Judge Signals Possible Dismissal of xAI Lawsuit Against OpenAI 
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Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic 
The Trump administration has acknowledged in court filings that it fired nearly 25,000 recently hired federal workers and is now reinstating them after a judge ruled the terminations were likely illegal. The filings, submitted in a Baltimore federal court, state that agencies are working to bring all affected employees back, placing them on administrative leave for now.
The mass layoffs impacted multiple agencies, with the Treasury Department terminating around 7,600 employees, the Department of Agriculture 5,700, and the Department of Health and Human Services over 3,200. U.S. District Judge James Bredar ruled on March 13 that the firings violated proper procedures and ordered reinstatements pending further litigation.
The Trump administration has appealed Bredar’s decision and requested a federal court in Richmond, Virginia, to pause the ruling. Meanwhile, former workers at various agencies, including the IRS and General Services Administration, have received reinstatement emails but remain on paid administrative leave.
A separate ruling by Judge William Alsup in San Francisco also mandated reinstatements but criticized the administration for placing workers on leave instead of returning them to active roles. The Justice Department argues that administrative leave is a necessary step toward full reinstatement.
Government officials warn that the ongoing legal battle is creating uncertainty and disruption. If an appeals court overturns Bredar’s decision, agencies could reinitiate terminations, further complicating employment statuses. Bredar has scheduled a March 26 hearing to determine whether his ruling should remain in place while the lawsuit proceeds.
The case, led by 19 Democrat-led states and Washington, D.C., highlights concerns over unemployment spikes and increased demand for state social services due to the mass firings.
