On July 8, 2025, the United States Supreme Court overturned lower court rulings that had blocked the reduction of the federal workforce. This decision allows the administration to proceed with its plans for layoffs and restructuring of federal agencies.
The ruling followed an earlier decision by Judge Susan Illston in May 2025, which had required Congressional approval for significant workforce reductions. The Supreme Court's decision was supported by a majority of justices, with Justice Ketanji Brown Jackson dissenting.
Despite the authorization, the implementation of these cuts has been gradual, with the Department of Veterans Affairs, for example, planning to reduce its workforce by approximately 30,000 employees this fiscal year. The government has largely achieved these reductions through hiring freezes, early retirements, and deferred resignation programs, avoiding mass layoffs.
The Office of Personnel Management reported that the number of federal employees has remained relatively stable, with 2.3 million on the federal payroll as of March 2025, due in part to voluntary resignation agreements and a hiring freeze implemented in January.
These actions have raised concerns among federal employee unions and advocacy groups, who fear that the cuts could affect the quality of public services and the efficiency of government agencies. Legal and political debates about reducing the federal workforce are expected to continue in the coming months.