On July 8, 2025, the Supreme Court of the United States granted the Trump administration’s request to stay a lower court ruling that had blocked President Donald Trump’s plan to downsize and restructure the federal workforce. The administration’s proposal includes major cuts to several key federal agencies that regulate labor and workplace safety, including the U.S. Department of Labor (DOL), the National Labor Relations Board (NLRB), and the National Institute for Occupational Safety and Health (NIOSH).
Key Takeaways:
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The Supreme Court lifted a prior injunction that had prevented the Trump administration from implementing its workforce reduction plan.
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The decision allows the administration to proceed with the reorganization initiative while ongoing legal challenges continue in the lower courts.
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The stay halts enforcement of a preliminary injunction issued by the U.S. District Court for the Northern District of California on May 22, 2025.
The blocked executive order—Executive Order (EO) 14210—directs federal agencies to initiate “large-scale reductions in force” as part of the administration’s “Department of Government Efficiency” initiative. It was accompanied by a joint memorandum from the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM) that detailed implementation procedures.
In its unsigned order granting the stay, the Supreme Court wrote:
“Because the Government is likely to succeed on its argument that the Executive Order and Memorandum are lawful—and because the other factors bearing on whether to grant a stay are satisfied—we grant the application.”
However, the Court clarified that it was not ruling on the legality of any individual agency action taken under the order, stating:
“We express no view on the legality of any Agency RIF and Reorganization Plan produced or approved pursuant to the Executive Order and Memorandum.”
Legal Background
The stay was issued in American Federation of Government Employees, AFL-CIO v. Trump, a lawsuit brought by labor unions, nonprofit groups, and local governments. Plaintiffs argue that the executive order constitutes an unconstitutional expansion of presidential authority and violates the Administrative Procedure Act (APA).
After the Ninth Circuit Court of Appeals denied the administration’s request for a stay on May 30, 2025, the administration petitioned the Supreme Court on June 2.
The Supreme Court stated that the stay will remain in effect “pending” resolution of the appeal in the Ninth Circuit and “disposition of a petition for a writ of certiorari, if such a writ is timely sought.” If certiorari is denied or the Supreme Court issues a final ruling, the stay will automatically expire.
Separate Opinions from the Bench
Justice Sonia Sotomayor filed a concurrence, emphasizing that EO 14210 itself directs agencies to act “consistent with applicable law.” She explained that the Court did not yet have the RIF plans before it, and therefore had “no occasion to consider whether they can and will be carried out consistent with the constraints of law.” Sotomayor agreed with granting the stay because it allows the lower court to evaluate the legality of the plans “in the first instance.”
Justice Ketanji Brown Jackson dissented from the decision to grant the stay. She criticized the majority for “greenlighting” the administration’s actions through emergency relief and argued that the district court’s injunction served as a “temporary, practical, harm-reducing preservation of the status quo.”
Executive Order Details
Signed on February 11, 2025, EO 14210 lays out the Trump administration’s vision for a more streamlined federal workforce through its “‘Department of Government Efficiency’ Workforce Optimization Initiative.” The order directs federal agencies to
“promptly undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law, and to separate from Federal service temporary employees and reemployed annuitants working in areas that will likely be subject to the RIFs.”
The stated goal is to “eliminat[e] waste, bloat, and insularity” across the federal bureaucracy.
What’s Next?
With the stay in place, the Trump administration is temporarily authorized to resume implementation of its federal workforce restructuring. However, the ultimate legality of specific agency actions under EO 14210 remains to be determined in the ongoing litigation. Our DC attorneys are here to help displaced workers navigate these complex waters.