A federal judge in San Francisco is temporarily blocking the State Department from finalizing hundreds of employee layoffs.

Judge Susan Illston approved a temporary restraining order on Thursday, preventing the department from officially terminating more than 200 employees, most of them Foreign Service officers.

Separately, federal employee unions are asking the U.S. District Court for the Northern District of California to reverse more layoffs than agencies have allowed under a spending deal that ended the recent government shutdown.

The American Federation of Government Employees and the American Foreign Service Association filed the emergency request for a temporary restraining order to bar the “imminent and unlawful execution” of reduction in force notices the State Department sent this summer.

“The severe threats to the public presented by the imminent State Department actions necessitate a temporary pause to protect the status quo for plaintiffs and the employees they represent who are adversely impacted by these imminent separations,” the emergency request states.

The emergency request is part of an ongoing lawsuit that unions filed on the eve of the government shutdown, which blocked the Trump administration from conducting widespread layoffs during a lapse in congressional funds.

The amended lawsuit states that several agencies, including the State Department, aren’t fully adhering to a provision in the shutdown-ending spending bill that temporarily blocked the Trump administration from carrying out layoffs.

The nonprofit Democracy Forward, which is also part of the lawsuit, said the amended lawsuit seeks to reverse “other unlawful RIF actions” at the Small Business Administration and the General Services Administration, as well as the departments of Education and Defense.

“Those RIFs would violate the federal legislation that ended the federal government shutdown, which prohibits implementation of any RIFs through January 30,” the amended complaint states.

The continuing resolution Congress passed on Nov. 12 states that “any reduction in force proposed, noticed, initiated, executed, implemented, or otherwise taken by an executive agency between October 1, 2025, and the date of enactment, shall have no force or effect.”

It also states that between Nov. 12, 2025 and Jan. 30, 2026, “no federal funds may be used to initiate, carry out, implement, or otherwise notice a reduction in force to reduce the number of employees within any department.”

Agencies, however, have followed a narrower interpretation of the stopgap spending bill, and have only reinstated federal employees who received RIF notices between Oct. 1 and Nov. 12. The amended lawsuit states that interpretation of the continuing resolution “is significantly under-inclusive.”

Agencies recently told a federal court that they rescinded shutdown-era RIF notices for more than 3,600 employees.

The State Department sent RIF notices to nearly 1,350 employees in July. Most of those employees were officially separated from the agency in September.

But this Friday, Dec. 5, the department plans to officially remove nearly 250 Foreign Service employees and several civil service employees whose separation dates were postponed, because they recently gave birth or faced medical issues.

The State Department claims that the continuing resolution’s layoff protections only apply to RIF notices that went out after Oct. 1.

“Defendants are wrong,” the amended complaint states. “The plain language of the continuing resolution prohibits any actions implementing any RIFs of any employees at any agency between November 12, 2025 and January 30, 2026, and requires recission of any previously issued RIF notices (regardless of when they were issued) if the RIFs were implemented during the shutdown.”

The amended lawsuit also takes issue with how the State Department modified the official separation date for impacted employees.

Foreign Service employees were originally told they would be separated from the agency on Nov. 10,  when the agency was still affected by the government shutdown. But on that date, employees received a notice from the department’s human resources offices that said they would remain on administrative leave so the agency could correct “administrative errors.”

On Monday evening, employees received a notice that said they will be officially separated from the State Department this Friday.

“The RIF notices were not reissued, and employees received nothing further from the State Department regarding the now-expired RIF notices until December 1, 2025,” the amended lawsuit states.

The State Department’s notice to employees cites “formal written guidance” from the Office of Management and Budget and the Justice Department’s Office of Legal Counsel regarding RIFs that had been issued prior to the shutdown, but further implemented during or after the shutdown. The unions leading the lawsuit say that formal written guidance hasn’t been made publicly available.

“During the shutdown, the State Department continued to implement the stages of these RIFs in preparation for final separation of the employees, including by processing personnel paperwork in advance of the planned separations,” the amended complaint states.

The unions claim that without a temporary restraining order, State Department employees and their families will suffer “irreparable harm,” including a loss of income and health insurance benefits.

“For many of these employees, the imminent loss of employment means a sustained loss of income and benefits in a job market already flooded with unemployed former State Department and USAID employees,” the amended complaint states.

AFGE National President Everett Kelley said in a statement that “Congress clearly stated that no federal employees should lose their jobs due to a reduction-in-force for the duration of the continuing resolution.”

“This means that no RIF should be issued or acted upon, and any RIF terminations that occurred during the shutdown must be reversed,” Kelley said.

AFSA President John Dinkelman said in a statement that these “unlawful separations reveal a callous indifference to the rule of law and the people who carry out America’s diplomatic mission every day.”

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The State Department’s diplomatic workforce is feeling overburdened, under-resourced and more likely to leave in the next few years, given sweeping changes happening under the Trump administration, according to a survey conducted by its union.

In a survey of more than 2,100 active-duty Foreign Service employees, the American Foreign Service Association found that 98% of respondents reported reduced morale this year.

About 86% of respondents said workplace changes since January have affected their ability to advance U.S. diplomatic priorities.

Before the Trump administration, about 17,000 active-duty Foreign Service officers worked for the State Department. AFSA estimates that nearly 25% of its workforce left this year — when counting layoffs, retirements and those who accepted deferred resignation offers.

Nearly a third of survey respondents said they have changed their career plans since the beginning of this year.

More than 80% of respondents said they entered the Service intending to serve 20 years or more — but now about 22% of them say they plan to leave the State Department within the next year or two.

AFSA President John Dinkelman said in a call Wednesday that survey results demonstrate a “workplace crisis” at the State Department that will take “years, if not decades, to repair.”

“When we undermine the Foreign Service, we undermine America’s ability to prevent conflict, support our allies, and protect our citizens abroad. In short, we weaken our global leadership,” Dinkelman said.

The State Department sent layoff notices to nearly 1,350 of its employees this summer. Those reductions in force will be finalized, once nearly 250 Foreign Service officers officially separate from the agency this Friday.

The department carried out a massive agency reorganization this year, consolidating and eliminating hundreds of offices.

After sending the mass layoff notices in July, the department began hiring new Foreign Service officers this fall.

Some candidates in the hiring pipeline had to retake a new version of the Foreign Service Officer Test that had been vetted by the Trump administration. The State Department has also made “fidelity” to the administration’s policy goals part of the new criteria to determine if Foreign Service officers are eligible for promotions.

Dinkelman said that the expertise of the Foreign Service “is not easily rebuilt,” and that the State Department will have less experienced diplomats filling its depleted ranks.

“While we certainly will be able to find individuals to enter the service and begin again, those individuals who come in in 2026, ‘27 and ‘28 will not have the expertise, that will have been lost in these previous years, for decades to come,” Dinkelman said.

State Department spokesman Tommy Pigott said in a statement that Secretary of State Marco Rubio “values candid insights from patriotic Americans who have chosen to serve their country.”

“In fact, this administration reorganized the entire State Department to ensure those on the front lines – the regional bureaus and the embassies – are in a position to impact policies,” Pigott said. “What we will not tolerate is people using their positions to actively undermine the duly elected president’s objectives.”

AFSA conducted the survey to gather feedback that its members have not been able to share with agency leadership.

Federal News Network first reported this summer that the Trump administration will not conduct the Federal Employee Viewpoint Survey this year, a governmentwide scorecard that tracks employee satisfaction.

“We knew that AFSA had a responsibility to step into this breach,” Dinkelman said. “This report offers the first independent snapshot of the Foreign Service during a period of sustained institutional stress.”

The 2024 Best Places to Work in the Federal Government scorecard, which parses FEVS data and is tracked by the Partnership for Public Service, shows the State Department received a 62.8 satisfaction score from employees — and ranked 16th for employee satisfaction among 18 large federal agencies.

About 78% of respondents said they are operating under reduced budgets this year, while 64% said key projects and initiatives are being delayed or suspended.

“I’ve served in hardship posts and multiple unaccompanied tours, but I never expected by my own government to openly disparage public service or the work of public servants,” an anonymous Foreign Service officer told AFSA.

Rohit Nepal, AFSA’s vice president for the State Department, said active-duty Foreign Service officers are being asked to take on more work from offices that have been eliminated, following the reorganization.

More than 60% of survey respondents agreed they are managing “significantly higher workloads due to staffing losses.”

“We’re talking about offices working on some of our highest priorities That could be the war in Gaza, Ukraine, our strategic competition with China. In other words, these folks are being asked to do more without the necessary resources to actually accomplish the job. It’s taking a toll on them,” Nepal said.

Nepal, who is an active-duty Foreign Service officer, said a hiring freeze this year led to key positions going unfilled during his last post in Amman, Jordan.

“We found ourselves unable to hire, even while we were dealing with an exchange of regular Iranian missile exchanges over Jordanian skies during the Israel-Iran war,” he said.

Nepal said Foreign Service officers are “reading the political tea leaves,” and avoiding certain types of jobs.

Nepal said a junior public diplomacy officer told him that they weren’t going to bid on jobs in public diplomacy, because “clearly we don’t care about PD anymore.”

Nepal said another Foreign Service officer with years of experience on refugee and human rights issues told him that “there’s no place for people like her in the department right now.”

“Let’s be clear: American diplomacy is weaker because of this politicization. Talented diplomats aren’t being selected for jobs or are not stepping forward because they believe they can’t get a fair shake in this environment,” Nepal said.

The report calls on Congress to intervene with sweeping changes happening to the agency, and that lawmakers “should make clear that career professionals cannot be punished, reassigned, or dismissed for political reasons.”

Sen. Chris Van Hollen (D-Md.), co-founder of the Senate Foreign Service Caucus, said in a statement that the report shows “a year of relentless attacks by the administration against these dedicated public servants has left our diplomatic corps in crisis — a vulnerability that our adversaries are all too happy to exploit.”

Linda Thomas-Greenfield, former Director General of the Foreign Service and U.S. ambassador to the United Nations, said in a statement that “AFSA’s data confirms we’re asking our diplomats to do more with less precisely when robust engagement is needed most.”

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The State Department is telling some employees targeted by mass layoffs this summer that their official separation date is imminent — and is not affected by a shutdown-ending spending deal that forced some agencies to rescind layoff notices.

The department’s human resources office, in a notice sent Monday evening, said Foreign Service employees who received reduction-in-force notices on July 11 will be officially separated from the agency this Friday, Dec. 5.

According to the Bureau of Global Talent Management, State Department attorneys determined that a recent stopgap spending bill passed by Congress, which ended the longest government shutdown, does not require the agency to rescind any RIF notices that were sent before the shutdown.

“Following formal written guidance from both the Office of Management and Budget and Department of Justice Office of Legal Counsel, the Department of State’s Office of the Legal Adviser has determined that completing the reductions in force (RIFs) noticed prior to the lapse in appropriations does not violate the Antideficiency Act (ADA) or any other restriction within HR 5371,” the memo obtained by Federal News Network states. “Given this determination, the Department will finalize your separation or involuntary retirement on Friday, December 5.”

The department, as part of this update, has modified the official separation date for impacted employees.

Foreign Service employees were originally told they would be separated from the agency on Nov. 10,  when the agency was still affected by the government shutdown. Those employees will now be separated from the State Department on Dec. 5

In a separate notice, Global Talent Management said the State Department is extending administrative leave for all Foreign Service employees who were scheduled for separation as part of the RIF.

“We are reviewing the administrative errors in all SF-50s issued on Friday, November 7, to ensure that all information is accurate,” the notice states, referring to a federal employee’s official employment record.

It’s not clear what administrative errors the department intends to correct. An employee’s SF-50 form shared with Federal News Network shows that Lew Olowski, the department’s top HR official, approved the RIFs to go into effect on Nov. 10.

A State Department spokesperson told Federal News Network that, “since the State Department’s lawful reduction in force (RIF) process was commenced and initiated well before the lapse in appropriations, the eliminated positions are not impacted by the language in the recent continuing resolution.”

“Legal opinions published by both OMB and DOJ confirm that outcome,” the spokesperson said. “The State Department will proceed with executing the RIF process as planned.”

A Foreign Service officer who received a RIF notice told Federal News Network that the State Department “can’t just extend admin leave” to set a new separation date.

The Foreign Service officer, who requested anonymity because they were not cleared to speak to the media, said moving the original Nov. 10 separation date amounts to a “de facto reinstatement,” and that the department would need to issue entirely new RIF notices and provide at least a 60-day notice for that new separation date.

“This entire action just seems patently unlawful, and I do not understand how the department plans to get away with it,” the Foreign Service officer said.

By law, each federal employee subject to a RIF “is entitled to a specific written notice at least 60 full days before the effective date of release.”

According to the SF-50 notice, employees eligible for severance will receive a lump-sum payment on Jan. 1, 2026.

The State Department laid off more than 1,300 employees on July 11. It sent RIF notices to more than 1,100 civil service employees and nearly 250 Foreign Service employees who were based in the United States at the time.

Senior department officials later told Congress that the RIF was the largest and most complex workforce reduction of its kind, and that they carried out the layoffs in consultation with the Office of Personnel Management.

Questions about the possibility of reinstatement primarily focused on laid-off Foreign Service officers, who had been on administrative leave for a longer period than their civil service counterparts.

Foreign Service employees who received RIF notices were scheduled to be officially 120 days out from their RIF notices. But civil service employees who received RIF notices had only 60 days before their official separation.  They left the department in early September.

The State Department and several other agencies have rejected calls from laid-off employees, unions and Democratic lawmakers who say more federal employees are eligible for reinstatement than what the Trump administration has allowed.

The American Foreign Service Association said last month that its interpretation of the continuing resolution passed by Congress on Nov. 12 blocks the State Department from moving forward with its layoff notices.

The continuing resolution Congress passed on Nov. 12 states that “any reduction in force proposed, noticed, initiated, executed, implemented, or otherwise taken by an Executive Agency between October 1, 2025, and the date of enactment, shall have no force or effect.”

“We understand that Congress intended for this language to apply to as many federal employees as possible, including those who received layoff notices from the State Department on July 11,” AFSA wrote.

On Tuesday, AFSA said it is working closely with the American Federation of Government Employees and will be pursuing legal action.

“This action flies in the face of the current funding law, which clearly prohibits using any federal resources to carry out layoffs during this period,” AFSA said in a statement. “That includes sending notices, processing paperwork, or taking any step to advance these separations.”

Democratic lawmakers say agencies aren’t reinstating as many federal employees as they should be under the spending deal.

Sen. Tim Kaine (D-Va.) is leading the push for more RIF rescissions, along with several of his Democratic colleagues.

Kaine was one of eight Democratic senators who broke ranks to pass the stopgap spending bill, only after Republicans agreed to include language that would protect federal employees from layoffs at least through Jan. 30, 2026. Kaine and his colleagues backed standalone legislation during the shutdown that would have also barred the Trump administration from moving ahead with its most recent wave of mass layoffs.

Kaine, along with Sens. Ed Markey (D-Mass.), Jack Reed (D-R.I.), and Patty Murray (D-Wash.), said the continuing resolution — particularly Section 120 of the stopgap bill — placed a moratorium on RIFs involving federal employees, and that the “moratorium is broad, clear and unequivocal.”

Agencies, however, have followed a narrower interpretation, and have only reinstated federal employees who received RIF notices between Oct 1 and Nov. 12. Agencies told a federal court that they rescinded shutdown-era RIF notices for more than 3,600 employees.

Federal News Network first reported that the Small Business Administration told 77 recently laid-off employees this week that they could get their jobs back, but rescinded that offer a day later.

An SBA spokesperson said in a statement that the agency “has determined that the most recent continuing resolution signed into law does not apply to any RIFs executed by the SBA.”

The Democratic senators told SBA Administrator Kelly Loeffler that the agency is “unlawfully pursuing reductions in force,” and that dozens of recently laid-off employees the agency hasn’t reinstated “have a right to continue their employment.”

A group of 35 former General Services Administration employees also called on the agency to rescind their RIF notices, on the grounds that Congress intended to reinstate them.

GSA’s Associate General Counsel Daniel Hall told their attorneys in a Nov. 24 letter that the RIF notices “were issued before and separate from the lapse in appropriations occurring on October 1, 2025, and are outside of the intended scope of the Act and its provisions on RIFs.”

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Democratic lawmakers say agencies aren’t reinstating as many federal employees as they should be, as part of a recent spending deal that ended the longest government shutdown.

Employees who received reduction in force (RIF) notices before the government shutdown, but were on track to be officially separated from their agencies during the shutdown, say layoff protections included in the Nov. 12 continuing resolution mean they should get their jobs back.

Agencies, however, have followed a narrower interpretation, and have only reinstated federal employees who received RIF notices between Oct 1 and Nov. 12. Agencies told a federal court last week that they rescinded shutdown-era RIF notices for more than 3,600 employees.

The continuing resolution Congress passed on Nov. 12 states that “any reduction in force proposed, noticed, initiated, executed, implemented, or otherwise taken by an Executive Agency between October 1, 2025, and the date of enactment, shall have no force or effect.”

Sen. Tim Kaine (D-Va.) is leading the push for more RIF rescissions, along with several of his Democratic colleagues.

Kaine was one of eight Democratic senators who broke ranks to pass the stopgap spending bill, only after Republicans agreed to include language that would protect federal employees from layoffs at least through Jan. 30, 2026. Kaine and his colleagues backed standalone legislation during the shutdown that would have also barred the Trump administration from moving ahead with its most recent wave of mass layoffs.

Kaine, along with Sens. Ed Markey (D-Mass.), Jack Reed (D-R.I.), and Patty Murray (D-Wash.), told Small Business Agency Administrator Kelly Loeffler that the agency is “unlawfully pursuing reductions in force,” and that dozens of recently laid-off employees the agency hasn’t reinstated “have a right to continue their employment.”

Federal News Network first reported last week that SBA told 77 recently laid-off employees this week that they could get their jobs back, but rescinded that offer a day later. An SBA spokesperson said in a statement that the agency “has determined that the most recent continuing resolution signed into law does not apply to any RIFs executed by the SBA.”

The senators said the continuing resolution — particularly Section 120 of the stopgap bill — placed a moratorium on RIFs involving federal employees, and that the “moratorium is broad, clear and unequivocal.”

“Consequently, SBA is without authority to maintain any RIFs that occurred during the lapse in appropriations or to initiate or otherwise carry out any new or previously noticed RIFs,” the senators wrote in a Nov. 20 letter.

The senators are directing SBA to reinstate the SBA employees and “return them to working status with full back pay.” The letter gives SBA until this Friday to comply with their request and provide an update to their offices.

House Small Business Committee Ranking Member Nydia Velázquez (D-N.Y.) also sent a letter to SBA, expressing “serious concern” over the agency’s back-and-forth announcements about RIF rescissions.

Velázquez told Loeffler that “there was no justification for the change,” and that “you have deliberately sought to harm federal employees, who have dedicated their careers to helping entrepreneurs launch and grow their small businesses.”

“The erratic, cruel, and callous manner in which you handled this matter is unacceptable,” she wrote. “The law is clear, and SBA must restore these employees to their positions with back pay, effective immediately.”

Recently laid-off employees at the General Services Administration are calling on the agency to rescind their RIF notices, citing language in the recently passed continuing resolution. The American Foreign Service Association is urging the State Department to reverse RIF notices that went out this summer and took effect during the shutdown.

Recently RIF-ed Justice Department employees are also seeking reinstatement.

A former DOJ employee said about 30 recently laid-off staff from the agency’s Community Relations Service, Office for Access to Justice and the Organized Crime Drug Enforcement Task Forces are also seeking reinstatement. These are all offices DOJ is seeking to eliminate or consolidate, as part of its agency reorganization plans.

The recently separated employee, who worked for the Community Relations Service, said it’s clear lawmakers meant to cover as many federal employees as possible in the layoff protections.

The Justice Department declined to comment.

The former DOJ employee said several individuals seeking reinstatement have appealed to the Merit Systems Protection Board. The former employee, however, said some have not pursued an MSPB appeal because of the cost and the long wait to receive a ruling from the board.

Others are hopeful that a federal lawsuit in Boston challenging the DOJ’s reorganization plans could eventually lead to reinstatement. The lawsuit is challenging the department’s plans to eliminate the Community Relations Service.

On Monday, members of the Congressional Equality Caucus wrote that, without CRS, DOJ would be too understaffed to handle a rise in reported hate crimes in the U.S.

“With these changes, CRS would be unable to perform its statutorily required functions with just one staff member. The dismantling of CRS is not only unlawful, it is also particularly concerning given the rise in community unrest, where CRS’s peacebuilding and mediation services would play a vital role.”

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The Small Business Administration told dozens of recently laid-off employees this week that they could get their jobs back, but rescinded that offer a day later.

SBA sent reduction in force notices to 77 employees on Sept. 29, just before the government shutdown. On Monday, the agency’s top HR official told impacted staff that those RIF notices have been rescinded.

“This letter is to formally rescind the reduction in force (RIF) notice dated 9/29/25,” SBA’s Chief Human Capital Officer John Serpa told employees in a Nov. 18 notice obtained by Federal News Network. “You are being reinstated to your position of record with the Small Business Administration (SBA).”

The notice gave laid-off employees until Wednesday to return to the office, if they wished to have their jobs back. If not, employees were given the option to retire or resign.

But a day later, the same SBA official said the layoffs will remain in effect.

“Notwithstanding any prior communication from U.S. Small Business Administration, the Sept. 29, 2025 RIF notice and termination affecting your position will remain in effect,” Serpa wrote.

The RIF rescissions and their immediate recall stem from competing interpretations of verbiage in the shutdown-ending spending deal Congress passed last week, which also put the Trump administration’s latest round of governmentwide layoffs on hold for now.

An SBA spokesperson told Federal News Network on Tuesday evening that the agency “has determined that the most recent continuing resolution signed into law does not apply to any RIFs executed by the SBA.”

“Therefore, the RIF in question, affecting 77 positions, remains,” the spokesperson said.

The spending deal that Congress passed on Nov. 12 to end the government shutdown states that, “any reduction in force proposed, noticed, initiated, executed, implemented, or otherwise taken by an executive agency between October 1, 2025, and the date of enactment, shall have no force or effect.”

SBA’s layoffs were also not included in a federal judge’s preliminary injunction that blocked the Trump administration from proceeding with layoffs during the 43-day government shutdown.

U.S. District Court Judge Susan Illston, in an Oct. 28 court proceeding, told parties in the lawsuit that her preliminary injunction “does not apply to RIF notices issued before the shutdown,” including those sent to SBA employees.

“The record may reflect that many employees of the Small Business Administration have been contacting the court. But it appears that the RIFs that they’re subject to went out on September 29 or 30, prior to the government shutdown. They would not be covered by this preliminary injunction,” Illston said.

SBA unveiled plans in March to cut its workforce by 43%. The agency expected to cut about 2,700 positions from its 6,500-employee workforce, mostly through voluntary separation incentives, as well as terminating pandemic-era and other term-appointment positions. SBA said it would only seek a limited number of layoffs through a nonvoluntary RIF.

SBA Administrator Kelly Loeffler said at the time that workforce cuts were needed to reduce “mission creep” and employees no longer needed to support pandemic-era stimulus programs.

An SBA employee told Federal News Network that union attorneys argued that SBA’s layoffs should be protected by the continuing resolution passed by Congress, because their separation dates would fall between Oct. 1 and Jan. 30.

Other unions have also made that case. The American Foreign Service Association said last week that its interpretation of the spending deal passed by Congress would block the State Department from moving forward with layoff notices it sent to more than 1,300 employees this summer.

The spending package passed by Congress states that between the date of enactment and Jan. 30, 2026, “no federal funds may be used to initiate, carry out, implement or otherwise notice a reduction in force to reduce the number of employees within any department, agency or office of the federal government.”

“We understand that Congress intended for this language to apply to as many federal employees as possible, including those who received layoff notices from the State Department on July 11,” AFSA wrote. “Given that the department set the separation date for the July 11 layoffs as today, Nov. 10, those actions should not move forward. We have written to the department to urge them to halt these actions immediately.”

AFSA wrote in a follow-up post that it is awaiting details “on how the continuing resolution will be implemented and what it means for Foreign Service members affected by the July layoffs at State.”

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