In a major setback to US President Donald Trump’s efforts to overhaul the federal bureaucracy, a US appeals court on Friday refused to suspend a lower court’s ruling that halts mass job firings across federal agencies. The decision means the sweeping job cuts initiative taken by the Department of Government Efficiency (DOGE), under the directives of Elon Musk, remains on hold.

The administration has pleaded for an emergency stay of an injunction issued by US District Judge Susan Illston in San Francisco. The legal challenge was brought to notice by labor unions and several city governments, including representatives from Chicago and San Francisco. They have raised their concerns that the federal government exceeded legal boundaries by implementing abrupt workforce cuts.

“The Ninth Circuit’s decision today rightfully maintains the block on the Trump-Vance administration’s unlawful, disruptive, and destructive reorganization of the federal government,” said a statement by the group, as quoted by Reuters.

Judge ruling halts DOGE’s overhaul plan

Judge Illston, who was appointed by former President Bill Clinton, ordered that while presidents have the power to reorganize federal agencies, such structural changes must be conducted with congressional involvement. Her ruling stops federal departments from taking action on the executive order signed by Trump in February and a DOGE-OPM (Office of Personnel Management) memorandum ordering aggressive personnel reductions.

Thousands are affected from federal job cuts

Although official numbers have not been released by the administration on job cuts, reports indicate at least 75,000 federal workers have chosen deferred resignation packages, while thousands more are on probationary status have already been terminated or have been sent on leave.

The executive order has given sanction to departments to streamline inefficiencies, but critics believed that it opened the door for politically driven firings.

The Trump administration has described the initiative as a move to remove inefficiencies in the federal system.

Trump has consistently said that voters have given him the mandate to remake the federal government, and he appointed Elon Musk to lead the effort through DOGE.

Judge Illston mentioned in her verdict that while presidents can pursue agency reforms, major structural changes require the involvement of Congress. Government attorneys stated that the executive order merely laid out principles for agencies to follow, but the court maintained its block, keeping the cuts suspended till further legal orders.

(With inputs from Associated Press)