Union Victory Protects Federal Employees From Shutdown Mass Firings
On September 25, 2026, NAGE and its union partners announced an important victory for federal employees, reaching a settlement agreement that withdraws government guidance used to pursue mass firings during a federal government shutdown.
The settlement stems from a lawsuit challenging efforts by the Trump administration to use the 2025 government shutdown to issue reduction-in-force (RIF) notices to federal employees. NAGE joined a coalition of federal unions challenging those actions and fighting to protect the federal workforce.
During the litigation, 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 agencies where the unions represented employees. The court later issued additional relief protecting employees from terminations that violated legislation ending the shutdown and requiring the reinstatement of employees who had been separated.
Now, the settlement provides additional protections going forward.
Under the agreement, federal agencies must be informed that the memo and guidance directing agencies to fire employees during government shutdowns has been abandoned. Agencies must also revise their shutdown plans to remove authorization for those RIFs and provide 30 days’ notice if they intend to change those plans to permit RIFs during a future shutdown.
For NAGE National President David J. Holway, the victory addresses a fundamental concern for federal employees and their families:
“Federal employees should never have to wonder whether a government shutdown will cost them their paycheck and their career.”
Holway emphasized that employees already face significant financial uncertainty when the government shuts down and should not also have to fear losing their jobs.
“A shutdown already creates tremendous financial uncertainty for workers and their families through no fault of their own. Threatening their jobs on top of that is unacceptable,” Holway said. “Our nation’s federal workforce is not a political pawn for this Administration and deserves stability, due process, and respect for the work they do every day on behalf of the American people.”
Representation in Action
This outcome demonstrates the role unions can play when actions affecting federal employees are challenged through the courts.
NAGE joined AFGE, AFSCME, NFFE, SEIU, NTEU, AFT and IFPTE in the litigation. Together, the unions challenged the shutdown-related mass firing effort and secured protections affecting the federal workforce.
The case will remain paused through the end of the year, preserving the unions’ opportunity to reopen the litigation if the government again attempts to use a shutdown to unlawfully fire federal employees.
As Holway stated:
“NAGE stands shoulder to shoulder with the labor movement in fighting for the rights of workers against these illegal attacks.”
For NAGE members, this victory is another example of why representation matters. When federal employees face actions that threaten their jobs, rights and livelihoods, NAGE will continue working alongside our labor partners to protect the workforce and make sure employees have a voice.
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