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Shutdown mass-layoff policy rescinded as part of settlement with unions

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Trump administration settles with unions over shutdown mass-layoff policy

The Trump administration reached a settlement with federal unions over a lawsuit challenging reductions in force (RIFs) conducted during the 2025 government shutdown. As part of the settlement, the administration rescinded its mass-layoff policy that had threatened widespread layoffs as a bargaining chip and sent RIF notices to thousands of federal employees during the lapse in appropriations.

Sep 25, 2026·3 sourcesGovernment shutdownsLabor unionsTrump administration policy
Trump administration settles with unions over shutdown mass-layoff policy
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