Court Halts HHS Mass Layoffs, Ruling Cuts Likely Unlawful

A federal court has suspended the sweeping layoffs at the Department of Health and Human Services (HHS), deeming the staff reductions likely illegal. The ruling, issued by Judge Melissa DuBose of the U.S. District Court for the District of Rhode Island, marks a significant setback for HHS Secretary Robert F. Kennedy Jr.'s controversial restructuring efforts.

Legal Challenge and Court Decision

In a 58-page ruling, Judge DuBose granted an injunction requested by a consortium of 19 states and the District of Columbia, who sued HHS leadership in May over what they termed the "unconstitutional and illegal dismantling" of the agency. The court determined that the plaintiffs "have shown a likelihood of success on their claims" and ordered HHS to halt implementation of the planned reduction in force (RIF) and sub-agency restructuring.

Judge DuBose emphasized that as an executive branch entity, HHS "does not have the authority to order, organize, or implement wholesale changes to the structure and function of the agencies created by Congress." While the court did not directly address the constitutionality of the HHS reorganization, it signaled skepticism about the legality of such sweeping changes without congressional approval.

Scale and Impact of Layoffs

The lawsuit filed by the states alleged that approximately 20,000 jobs at HHS have been eliminated since the beginning of the year. This figure includes:

• Over 5,000 probationary staff laid off in February
• 10,000 positions terminated through Kennedy's restructuring
• Thousands of employees who accepted government buyouts

The Food and Drug Administration (FDA) was hit particularly hard, losing around 3,500 workers. Other agencies affected include:

• Centers for Disease Control and Prevention (CDC): 2,400 job cuts
• National Institutes of Health (NIH): 1,200 layoffs

These staff reductions have led to regulatory delays, with several pharmaceutical companies reporting postponements in drug approvals.

Partial Reinstatements and Ongoing Challenges

In response to mounting criticism and operational difficulties, HHS has begun rehiring some of the dismissed employees:

• FDA: Approximately 330 employees rehired, including staff in medical device review departments and those involved in travel arrangements for inspectors and user fee negotiations
• CDC: 450 employees reinstated, including workers in HIV prevention programs
• NIH: 220 staff members brought back

Despite these reinstatements, the overall impact of the layoffs remains significant. A separate lawsuit filed by affected employees last month claimed that the termination decisions were based on "hopelessly error-ridden" information.

As the legal battle continues, the pharmaceutical industry watches closely, anticipating potential further disruptions to regulatory processes and public health initiatives. The court's decision represents a critical juncture in the ongoing debate over the structure and function of key health agencies in the United States.