Background of the Case

The Supreme Court has temporarily paused a federal district court’s ruling that mandated the reinstatement of over 16,000 federal workers who were dismissed in early 2025. The layoffs, which affected employees across six federal agencies, sparked legal challenges from various nonprofit organizations. They argued that the terminations breached several provisions of federal law concerning administrative agencies.

Supreme Court’s Decision

In a 7-2 decision, the justices placed Senior U.S. District Judge William Alsup’s order on hold. The court stated that the challenging nonprofits lacked the necessary legal standing to proceed with their claims. The ruling specifically did not address the claims of other plaintiffs, including labor unions representing government employees, which were not considered by Alsup.

Justice Sonia Sotomayor and Justice Ketanji Brown Jackson both expressed their dissenting opinions, suggesting they would have denied the administration’s request to stay the district court’s order.

Details of the Layoffs

The layoffs occurred as part of the Trump administration’s initiative to downsize the federal workforce. The affected employees were primarily newly hired probationary workers, and the nonprofits contended that these terminations could diminish government services critical to their members.

Judge Alsup had previously found that while federal agencies retain the authority to fire their employees, the Office of Personnel Management (OPM) overstepped its jurisdiction by executing layoffs across different agencies. He issued a preliminary injunction that compelled OPM and six additional federal departments to reinstate the dismissed workers.

Legal Arguments Presented

The Trump administration, represented by then-acting U.S. Solicitor General Sarah Harris, requested that the Supreme Court halt Alsup’s order, arguing that the nonprofits did not possess standing. She further claimed that the district court’s decision enabled third parties to interfere with the employer-employee relationship between federal agencies and workers.

Conversely, the nonprofits asserted their right to challenge the layoffs based on potential adverse impacts on their members, notably those relying on services from the Department of Veterans Affairs. They maintained that the court’s decision merely restored conditions preceding the alleged illegal actions by the OPM.

Current Developments

Although the Supreme Court stayed Alsup’s order, another federal court in Maryland has issued a ruling that mandates the reinstatement of probationary employees in 20 federal agencies, covering multiple states and Washington D.C. This latter decision remains effective as the legal battles continue.

The ruling from the Supreme Court marks a significant moment wherein it has intervened to allow the Trump administration’s policies to proceed, despite the challenges faced in lower courts.