Appeals Court Denies Request to Resume Layoffs at Federal Health Agencies

On Wednesday, an appeals court turned down the Trump administration’s attempt to restart significant layoffs at federal health agencies, which were part of a restructuring initiative.

A unanimous three-judge panel from the First U.S. Circuit Court of Appeals decided against lifting a lower court order that has blocked the restructuring. This decision comes amidst ongoing support for the case from Democratic-led states.

Nineteen states, along with the District of Columbia, filed a lawsuit after the Department of Health and Human Services (HHS), directed by Robert F. Kennedy Jr., let go of 10,000 employees and began dismantling several of its sub-agencies.

In July, US District Judge Melissa Dubose, appointed by former President Biden, intervened to halt the reorganization, finding it likely to be illegal.

The case particularly concerns the abrupt layoffs in four HHS offices: the Tobacco Products Center, the Head Start Office, specific components of the Center for Disease Control and Prevention, and the Secretary’s Assistant for Planning and Assessment.

In its appeal, the administration contended that the states lacked the legal grounds to sue, arguing instead that federal law necessitates such claims to be addressed before institutions managing the merit system of federal workers, rather than courts. They also argued that the restructuring was legal.

This argument leans heavily on a July Supreme Court ruling that allows the Department of Education to dismiss roughly half of its employees. It adds another layer to the ongoing discussions about interpreting recent emergency orders issued by the high court concerning the administration’s actions.

The Justice Department stated to the court, “The Supreme Court has clearly determined that despite all the legal debates presented by the plaintiffs, the agency should be permitted to continue its restructuring efforts while the case is ongoing.” The states countered that the judge’s ruling did not adequately address the district court’s findings regarding clear factual records and the need for specific preliminary relief.

The First Circuit Panel, which includes US Circuit Judges Lala Montecarbo, Julie Rickelmann, and Seth Aflame, all nominated by former President Biden, has now left the door open for the administration to seek relief from the Supreme Court.