Federal Judge Denies Union Bid to Amend Mass Layoff Lawsuit to Block USDA Reorganization

Federal Judge Denies Union Bid to Amend Mass Layoff Lawsuit to Block USDA Reorganization

In a procedural victory for the Trump administration, U.S. District Judge Susan Illston on Wednesday, September 2, 2026, rejected a bid by federal employee unions and local governments to block a major reorganization at the U.S. Department of Agriculture (USDA) within their existing consolidated civil service lawsuit. However, the judge explicitly left the door open for the plaintiffs to file a separate lawsuit specifically targeting the USDA's plans.

The plaintiffs, which include the American Federation of Government Employees (AFGE), the American Federation of State, County and Municipal Employees (AFSCME), and several local governments, had sought to amend their landmark 2025 lawsuit (AFGE v. Trump, No. 1:25-cv-3698) to halt the USDA overhaul. The USDA's plan involves relocating 2,500 employees and moving major operations out of Washington, D.C., to five regional hubs across the country.

In her decision, Judge Illston ruled that the USDA-specific claims were too different from the broader civil service issues in the existing lawsuit to be combined.¹

"The proposed supplemental claims would inject factually and legally distinct issues into this already complicated litigation."

The USDA's relocation plans have drawn intense criticism from unions, cities, and advocacy groups, who argue that relocating research, food safety, and nutritional assistance staff away from the capital would severely disrupt critical functions, such as supporting low-income families and ensuring food safety.

While the ruling is a temporary procedural setback for the unions, Judge Illston's decision provides a clear path forward for a dedicated legal challenge.

"The judge said the plaintiffs can file a new lawsuit specifically targeting the USDA's plans, which include moving operations out of Washington, D.C., to five regional hubs around the country and relocating 2,500 employees."

This development represents a critical chapter in the ongoing battle between the Trump administration's "deconstruction of the administrative state" and the federal employee unions defending civil service structures.