Unions Win Withdrawal of Shutdown Mass Firing Orders

Settlement Agreement Avoids Mass Firings of Federal Employees Attempted During Government Shutdown

SAN FRANCISCO — A settlement agreement has been announced in a case brought by labor unions that challenged the Trump-Vance administration’s unlawful mass firing of federal employees during the 2025 government shutdown. During that shutdown, Judge Susan Illston of the U.S. District Court for the Northern District of California issued a preliminary injunction preventing the administration from issuing or enforcing reduction-in-force notices at federal agencies where the unions represent employees. The court also issued subsequent injunctive relief stopping the federal government from firing employees in violation of the federal legislation that ended the shutdown and requiring reinstatement of any employees who had been separated.

The settlement agreement, announced today in a court filing by the coalition of unions and the Department of Justice, will pause the current litigation and require federal agencies to be informed that the memo and guidance directing federal agencies to fire employees during federal government shutdowns has been abandoned, to modify their own agency shutdown plans to remove any authorization of RIFs, and to give 30 days’ notice if they intend to modify those plans to allow RIFs during a future government shutdown. 

The case was brought by the American Federation of Government Employees and the American Federation of State, County and Municipal Employees on Sept. 30, 2025 and the case later expanded to include employees represented by the National Federation of Federal Employees, the National Association of Government Employees, the Service Employees International Union, the National Treasury Employees Union, the American Federation of Teachers, and the International Federation of Professional and Technical Engineers. The unions are represented by Altshuler Berzon LLP, Democracy Forward and Democracy Defenders Fund.

“President Trump recklessly used federal workers and public services as political leverage to get his way on the budget, but labor unions stood strong defending their members and those who benefit from their services,” said Amb. Norm Eisen (ret.), co-founder and executive chair of Democracy Defenders Fund. “That has now completely unraveled his ruthless assault on the civil service. This landmark victory establishes safeguards guaranteeing that these unlawful and disgraceful abuses of power do not happen again in the next budget fight.”

“Today, working people won. The administration tried to turn a shutdown into an excuse to fire the public servants who kept this country running without a paycheck on payday, and we refused to let it stand. We fought back, we held the line, and they backed down,” said AFGE National President Everett Kelley. “The people they tried to fire are hardworking Americans who care for our veterans, keep our airports safe, and make sure Social Security checks go out on time. They deserve to be treated with dignity and respect for their service, not used as pawns in a political fight they had no part in creating. AFGE and our allies will always stand up for that principle, in the courtroom, in Congress, and anywhere else we have to.”

“We brought this case forward in defense of our nation’s federal workers — including the highly skilled, nonpartisan professionals AFSCME represents who have dedicated their careers to keeping our communities safe and healthy, from the planes we fly on to the food we eat,” said AFSCME President Patrick Moran. “But this billionaire-run administration continues to put politics between these essential workers and their public service, at great expense to our communities. We’re glad this settlement places limits on their ability to use federal workers as bargaining chips to push their extreme agenda during the next government shutdown, but the fight is far from over. We will remain vigilant against this administration’s attacks on federal workers and keep organizing so they can secure the protections that come with a union contract.”  

“After inflicting intentional trauma and stress on the entire federal workforce during the longest government shutdown in the history of the United States, using it as a tactic to fire public servants was a new low for the Trump administration,” said NFFE National President Randy Erwin. “Not only was it absolutely shameful, but it was also highly illegal. Today, we are proud the rule of law has prevailed and the courts have sided with the unions and organizations who pushed back on this reckless action. NFFE and our union brothers and sisters will always stand up for the public servants who keep this country running every day.”

“Federal employees should never have to wonder whether a government shutdown will cost them their paycheck and their career,” said NAGE National President David J. Holway. “A shutdown already creates tremendous financial uncertainty for workers and their families through no fault of their own. Threatening their jobs on top of that is unacceptable. Our nation’s federal workforce is not a political pawn for this administration and deserves stability, due process, and respect for the work they do every day on behalf of the American people. NAGE stands shoulder to shoulder with the labor movement in fighting for the rights of workers against these illegal attacks.”

“You cannot gut the federal workforce without hurting the American people,” said NTEU National President Doreen Greenwald. “The administration tried to use a government shutdown to eliminate jobs, hollow out federal agencies and make it harder for Americans to get the services they depend on. This victory protects more than federal employees and their livelihoods. It protects a government that works for the people it serves. NTEU will never stop fighting for those who make that possible.”

“Federal workers keep our country running and serve our communities every day. They should be able to do their jobs and provide for their families without the threat of losing their livelihoods to score political points,” said SEIU International President April Verrett. “This settlement is a victory for working people and a reminder of what happens when workers stand together and refuse to be treated as disposable. No matter who sits in the White House, public servants deserve what every worker deserves: money to provide for their families, power over the decisions that shape their lives, and respect for the work they do. When we stand together, we can make sure they get it.”

“Only an administration that wanted to hurt workers and help billionaires would use a government shutdown as a cynical pretext to fire tens of thousands of federal employees,” said AFT President Randi Weingarten. “Today’s victory is yet another rebuke to this administration’s illegal attacks on the people who keep this country running. And if they try it again we will be waiting in the courts and on the streets to send a message that the American people won’t stand for these bully boy tactics that hold workers’ careers to ransom to pursue a craven political agenda.”

“It is heartening to see that the Trump DOJ has finally acquiesced to the obvious — that they do not have the legal authority to fire federal workers during a lapse in congressionally appropriated funding,” said IFPTE President Matt Biggs. “Like all other attacks on the federal workforce, this was yet another illegal attempt to dismantle our federal civil service and the vital services its workers provide. IFPTE, along with the wider labor movement, will continue to fight in the courts, on Capitol Hill, and at the grassroots level, to restore these jobs and the services they provide to the public.”  

The case will be held in abeyance until the end of the year, giving the unions the opportunity to reopen the case if the government again attempts to use a shutdown to unlawfully fire federal workers. 

“People and communities across the country rely on the often-unseen work of America’s civil servants, which keeps people safe, keeps people healthy and keeps our democracy functioning. We are pleased that this settlement agreement will stop the insidious effort from the Trump-Vance administration to weaponize the shutdown that they had caused to unlawfully dismantle our government,” said Skye Perryman, president and CEO of Democracy Forward. “We are honored to work with our union partners and co-counsel to stop this unlawful attempt to fire droves of federal employees.” 

“This coalition of labor unions fought back and won,” said Robin Tholin, attorney at Altshuler Berzon LLP. “Through this case, the federal unions protected federal workers against the Trump administration’s unlawful scheme to use a government shutdown as an excuse to order mass firings for their own political advantage. We are proud to work with union partners and co-counsel on a settlement that protects against any attempt to use mass terminations of federal workers as a tactic in the next budget fight.” 

The case is American Federation of Government Employees et al. v. Office of Management and Budget et al. The legal team at Democracy Forward in the matter includes Elena Goldstein, Jennie Kneedler, and Webb Lyons. 

Read today’s settlement agreement here.

# # #

Democracy Defenders Fund brings together a nonpartisan team to work with national, state and local allies across the country to defend in real-time the foundations of our democracy. 

The American Federation of Government Employees (AFGE) is the largest federal employee union, representing more than 800,000 workers in the federal government and the government of the District of Columbia. For the latest AFGE news and information, visit the AFGE Media Center. 

AFSCME’s 1.4 million members provide the vital services that make America happen. With members in communities across the nation, serving in hundreds of different occupations — from nurses to corrections officers, child care providers to sanitation workers — AFSCME advocates for fairness in the workplace, excellence in public services and freedom and opportunity for all working families. 

SEIU unites 2 million diverse members in the United States, Canada and Puerto Rico. SEIU members working in the healthcare industry, public sector and property services believe in the power of joining together on the job to win higher wages and benefits and to create better communities while fighting for a more just society and an economy that works for all of us, not just corporations and the wealthy. Learn more at www.seiu.org 

The AFT represents 1.8 million pre-K through 12th-grade teachers; paraprofessionals and other school-related personnel; higher education faculty and professional staff; federal, state and local government employees; nurses and healthcare workers; and early childhood educators. 

Established in 1917, the National Federation of Federal Employees is America’s first union representing civil service federal employees.  NFFE represents approximately 110,000 federal employees in 35 departments and agencies governmentwide. NFFE is affiliated with the International Association of Machinists and Aerospace Workers, AFL-CIO. For more information, go to www.nffe.org. 

The National Association of Government Employees (NAGE) represents over 125,000 public and private sector workers across the country, including 75,000 Federal employees. Individuals who work tirelessly to keep our communities running; from keeping the lights on and water clean, highways safe, and State & Federal Governments running, to providing essential EMS care and community protection services, NAGE members set the standard of service. For more information, please visit nage.org 

Founded in 1918, the International Federation of Professional and Technical Engineers (IFPTE) is a labor union representing more than 90,000 workers across North America, including upwards of 30,000 federal workers. For more information, go to ifpte.org.  

NTEU members deliver the essential government services Americans depend on every day. Working across 38 federal agencies and departments — from law enforcement officers and scientists to food inspectors, bank examiners, and park rangers — NTEU members protect the public, strengthen our economy, and keep our government working. NTEU fights for a strong federal workforce and the pay, benefits, rights, and respect federal employees have earned. For more information, visit nteu.org.

Democracy Forward Foundation is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement. For more information, please visit www.democracyforward.org 

Altshuler Berzon LLP is a law firm dedicated to providing the highest quality representation in the service of economic justice and the public interest. Altshuler Berzon specializes in labor and employment, constitutional, environmental, civil rights, class action, campaign and election, and impact litigation at both the trial and appellate levels. 

For media inquiries, contact press@democracydefenders.org.