In a significant ruling on Tuesday, a federal judge in San Francisco put a stop to the Trump administration's efforts to lay off thousands of federal employees amid an ongoing government shutdown. U.S. District Judge Susan Illston of the Northern District of California issued a preliminary injunction, blocking the administration from issuing any new reductions-in-force (RIF) notices that stemmed from the shutdown.

The legal challenge was initiated by several federal employee unions, including the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) and the American Federation of State, County and Municipal Employees (AFSCME). They argued that the Office of Personnel Management and the Office of Management and Budget exceeded their authority under the Administrative Procedure Act (APA) by directing agencies to proceed with layoffs without appropriated funds.

In contrast, the defense cited the Antideficiency Act, claiming it necessitated layoffs due to the lack of appropriations for maintaining unfunded positions as a cost-saving measure. However, Judge Illston clarified that the case was evaluated under the APA, focusing on agency actions that were allegedly "contrary to law," rather than under the Antideficiency Act.

The court's decision mandates that the administration halt any new RIF notices linked to the shutdown, compile a report of all RIFs issued since October 1, and provide declarations detailing compliance with the court's order within ten days. This order does not affect layoffs that were initiated before the shutdown, which had already resulted in approximately 4,000 RIF notices by October 10.

This ruling comes as a relief to thousands of federal employees who faced uncertainty about their job security due to the government's funding lapse. The outcome underscores the ongoing legal and administrative challenges that arise during extended periods of government shutdowns, highlighting the complex interplay between federal budget processes, labor rights, and statutory protections.