Judge blocks State Department's planned overhaul, mass layoffs

A federal judge in California Friday temporarily blocked the State Department from implementing a massive overhaul that included nearly 2,000 layoffs.

A federal judge in California Friday temporarily blocked the State Department from implementing a massive overhaul that included nearly 2,000 layoffs. (Joshua Roberts, Reuters)


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KEY TAKEAWAYS
  • A federal judge blocked the State Department's reorganization plan Friday, which included mass layoffs.
  • U.S. District Judge Susan Illston's ruling aligned with her previous decision against Trump's layoff directive.
  • The State Department claimed its plan predated a February executive order, but Illston disagreed.

SAN FRANCISCO — A federal judge in California on Friday temporarily blocked the State Department from implementing an agency-wide reorganization plan that includes nearly 2,000 layoffs.

U.S. District Judge Susan Illston in San Francisco said during a virtual hearing that her May ruling barring federal agencies from laying off tens of thousands of employees at the direction of President Donald Trump applies to the planned overhaul announced by the State Department in April.

The State Department had argued that its reorganization plan, submitted to Congress last month, predated a February executive order and subsequent White House memo directing mass layoffs, placing it outside the scope of Illston's decision.

But Illston said various State Department documents, including a budget proposal recently submitted to Congress, explicitly cited Trump's order.

"If things proceed consistent with that executive order, even if they were initiated in some different way … then they are barred," said Illston, an appointee of President Bill Clinton, a Democrat.

Department of Justice lawyer Alexander Resar said in response that the State Department would not issue layoff notices that were scheduled to go out on Saturday.

The ruling came in a lawsuit by a group of unions, nonprofits and municipalities.

The State Department and lawyers for the plaintiffs did not immediately respond to requests for comment.

The Trump administration has already asked the Supreme Court to pause Illston's May decision while it appeals. Illston blocked about 20 federal agencies, including the State Department, from carrying out plans to downsize and restructure at Trump's direction, pending the outcome of the lawsuit.

But the department told Congress in late May that it still planned to notify about 2,000 employees this month that they were being laid off and would reorganize or eliminate more than 300 bureaus and offices.

The State Department said it would undertake its reorganization plan by July 1, and has not commented about the potential impact of the lawsuit.

In a court filing on Friday, Daniel Holler, deputy chief of staff to Secretary of State Marco Rubio, said the agency's plan was crafted by Rubio and a small group of advisers to streamline operations and not in response to Trump's order. Holler said State Department planning documents had referred to the executive order in error.

Resar, the Justice Department lawyer, doubled down on those claims during Friday's hearing.

"Those determinations are ones (Rubio) is lawfully empowered to make to assess how department resources should best be allocated," he said.

Illston said she was not persuaded.

"If the government has any questions about whether what I say includes or does not include something, then I direct you to tell me and the plaintiffs what your confusion is before you do anything," she said.

Illston, in her May decision, said the White House cannot order the restructuring of federal agencies without authorization from Congress.

The ruling was the broadest of its kind against the government overhaul that was spearheaded by Trump ally Elon Musk, the world's richest person, who had a swift and acrimonious falling out with the Republican president last week.

Musk on Wednesday said he regretted some of the comments he had made about Trump in social media posts and deleted some of them, including one signaling support for Trump's impeachment.

Contributing: Humeyra Pamuk

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The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.

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