A federal courthouse from the front.

Supreme Court votes to allow federal workforce reductions

July 9, 2025

The Supreme Court on July 8 ruled in favor of the Trump administration, lifting a nationwide injunction that blocked federal layoffs. This clears the way for additional downsizing across federal agencies.

The unsigned decision emphasized it was not deciding on the legality of the administration’s attempt to reshape over 20 government agencies, but determined the lower courts likely overstepped in blocking the initiative nationwide. 

The White House’s executive order at issue outlines a plan for workforce reductions across federal agencies, including limits on new hires, the non-renewal of term positions and the expedited removal of employees deemed to be underperforming.

While courts decide the constitutionality of the reorganization, the ruling enables the Trump administration to implement planned restructures across federal agencies without congressional approval.

In May, the Trump administration called on the Supreme Court to lift the nationwide injunction, following a federal judge’s order that halted job cuts and the enforcement of other cost-cutting measures by the Department of Government Efficiency. 

The federal judge in San Francisco had claimed the Trump administration overreached constitutional boundaries by conducting large-scale reorganizations and reductions without congressional approval. The administration appealed the decision through the Ninth Circuit Court of Appeals; however, the court maintained the injunction and agreed with the lower court’s decision.

Following the Supreme Court’s lift of the injunction, the administration may continue implementing a rigorous and expansive downsizing of approximately 20 federal agencies, including the departments of Commerce, Energy, Education, Housing and Urban Development and the Federal Emergency Management Agency. There could be other agencies impacted as well.

Some agencies, such as the Department of Health and Human Services (HHS), were already planning downsizing efforts to align with the Trump Administration’s new mandates. HHS had initially introduced plans to lay off approximately 8,000 employees across the country.

Should the administration proceed with large-scale layoffs before the high court issues a final ruling, critics argue that agencies may undergo irreversible changes, including diminished capacities, government-wide loss of institutional knowledge and a degradation of public services.


Photo by Pixabay

Brady Pieper

written for various daily and weekly publications in Texas and Colorado, specializing in the government market and in-depth bill coverage. Graduating from the University of Texas at Austin with a degree in Journalism, Pieper has been at the forefront of public and private sector communications and government initiatives. Pieper recently joined the Government Market News team as a content writer and anticipates continuing SPI’s long-standing tradition of delivering timely, accurate and significant government news to our readers and partners.

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