AFGE and other unions who challenged the Trump administration’s illegal mass firing of federal workers during the 2025 government shutdown have reached a settlement agreement in the case that formally ends the termination effort.
The settlement agreement, announced Sept. 25 in a court filing by the coalition of unions and the U.S. Department of Justice, pauses the current litigation and requires the government to inform federal agencies that the memo and guidance directing federal agencies to fire employees during federal government shutdowns has been rescinded. It also requires agencies to modify their shutdown plans to remove any authorization of reductions in force (RIFs) and to give 30 days’ notice if they intend to modify those plans to allow RIFs during a future government shutdown.
“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,” AFGE National President Everett Kelley said in a press statement.
“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.”
The lawsuit was filed by AFGE and the American Federation of State, County and Municipal Employees (AFSCME) on Sept. 30, 2025, and later expanded to include employees represented by the National Federation of Federal Employees (NFFE), the National Association of Government Employees (NAGE), the Service Employees International Union (SEIU), the National Treasury Employees Union (NTEU), the American Federation of Teachers (AFT), and the International Federation of Professional and Technical Engineers (IFPTE). The unions are represented by Altshuler Berzon LLP, Democracy Forward, and Democracy Defenders Fund.
During the 2025 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 RIF 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 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.”
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