US judge blocks State Department's planned overhaul, mass layoffs

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

A federal judge in California on Friday temporarily blocked the U.S. State Department from implementing an agency-wide reorganization plan that includes nearly 2,000 layoffs. U.S. District Judge Susan Illston in San Francisco ruled that the State Department's plan falls under the scope of her previous decision that bars federal agencies from laying off tens of thousands of employees at the direction of President Donald Trump.

Illston's ruling came in response to a lawsuit filed by a group of unions, nonprofits, and municipalities. 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. However, Illston disagreed, stating that various State Department documents, including a budget proposal recently submitted to Congress, explicitly cited Trump's order.

The judge's decision aligns with her earlier ruling that the White House cannot order the restructuring of federal agencies without authorization from Congress. The ruling is part of a broader legal challenge against the Trump administration's plan to dramatically shrink and overhaul federal agencies.

The Trump administration has already asked the U.S. Supreme Court to pause Illston's May decision while it appeals. The State Department had 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. However, the department will not issue layoff notices as scheduled following the judge's ruling.

In a court filing on Friday, Daniel Holler, the deputy chief of staff to Secretary of State Marco Rubio, stated that 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. However, Illston was not persuaded by these claims.

The ruling is significant as it is one of the broadest of its kind against the government overhaul that was spearheaded by Trump ally Elon Musk, who had a swift and acrimonious falling out with the Republican president last week.

References:
[1] https://www.cnbc.com/2025/06/13/us-judge-blocks-state-departments-planned-overhaul-mass-layoffs-.html
[2] https://www.yahoo.com/news/us-judge-blocks-state-departments-191041785.html
[3] https://www.facebook.com/Reuters/posts/just-in-a-federal-judge-in-california-temporarily-blocked-the-us-state-departmen/1253862906604439/
[4] https://www.ksl.com/article/51329866/judge-blocks-state-departments-planned-overhaul-mass-layoffs
[5] https://www.reuters.com/sustainability/sustainable-finance-reporting/us-judge-blocks-state-departments-planned-overhaul-mass-layoffs-2025-06-13/