A federal judge in Washington, D.C., has temporarily paused the Trump administration’s attempt to implement large-scale layoffs at the nation’s primary financial oversight agency, following concerns that the plan may violate a previous court order.
The ruling, issued by U.S. District Judge Amy Berman Jackson, halts the planned termination of approximately 1,400 employees nearly 90% of the agency’s workforce while the court reviews whether the administration’s actions contradict an earlier injunction.
The pause came just after an appeals court modified Jackson’s original order. In response, plaintiffs in the case including the agency’s employee association and other labor representatives argued that the administration was moving forward with the layoffs despite the court’s warnings. Jackson noted that shortly after the appeals court ruling, employees were informed the agency would proceed with a workforce reduction, directly contradicting the court’s direction.
“I’m prepared to move quickly, but this reduction won’t proceed until I’ve had the chance to fully assess its legality,” Jackson said during a hearing, expressing serious concern over both the scale and speed of the planned action.
Attorneys representing the government have challenged the court’s authority in this matter, claiming that Jackson’s prior injunction overstepped judicial boundaries and infringed on executive powers. However, the judge reaffirmed her stance, preventing any layoffs or restrictions on employee access to agency systems until key officials provide testimony later this month.
The legal challenge was originally brought in early February, shortly after the administration initiated efforts to significantly reduce the agency’s size. A preliminary injunction was issued in late March, with the court finding that the plaintiffs were likely to succeed in their arguments. That ruling required the government to rehire any dismissed employees, reinstate contracts, and refrain from further staff reductions or operational disruptions.
An appeal from the administration followed soon after, but Friday’s ruling reinforces the court’s intent to maintain the status quo until the matter can be fully examined. A hearing on the issue has been scheduled for April 28.
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