Federal Workers Win Another Layoff Reprieve in DHS Funding Bill

The moratorium on mass layoffs of federal workers will continue into mid-February after Congress passed a stop-gap measure funding the Department of Homeland Security, the office of Sen. Tim Kaine (D-Va.) confirmed.

The bill, approved by Congress Tuesday, extends language negotiated as part of the November funding deal that prevents the Trump administration from using federal funds to carry out any widespread reductions in force.

The extension is a temporary win for public-sector unions that have sought to permanently extend the moratorium after the Trump administration used a combination of resignation incentives and formal RIFs to cut the federal workforce by about 219,000 in 2025.

The moratorium was initially negotiated by Kaine, and will last only until DHS funding runs out on Feb. 13.

“The real question is whether Congress will extend the moratorium again when it enacts final appropriations for the Department of Homeland Security,” said Nick Bednar, an administrative law professor at the University of Minnesota.

Congressional leaders and Trump are currently negotiating a long-term funding bill for DHS, with Democrats seeking new restraints on immigration enforcement officials in the wake of shootings by officers in Minnesota.

Litigation Impact

Judge Susan Illston of the US District Court for the Northern District of California in December paused RIFs conducted during the moratorium period through Jan. 30, when the deal was originally expected to expire.

Since Illston’s opinion cited the clause in the November deal that the DHS stopgap extended, she is likely to continue blocking firings through Feb. 13, attorneys said.

The moratorium “ties the prohibition directly to the continuing resolution’s expiration date,” said Suzanne Summerlin, an attorney specializing in the federal workforce. “Extend one, you extend both.”

The block applies to all federal employees, even those outside of DHS, according to Kaine’s office. That means Illston’s block on firings from the Department of Education, General Services Administration, Small Business Administration, State Department, and the Department of Defense will continue.

“The moratorium applies broadly to all civilian positions, whether permanent, temporary, full-time, part-time, or intermittent, regardless of funding source,” Summerlin said.

Future Fights

While federal workers and unions have legal tools to challenge further layoffs, a permanent extension of the moratorium or similar language would be the most-effective way to limit firings.

None of the other appropriations bills passed by Congress contain an extension of the moratorium. Some of the bills do contain language that requires agencies to maintain adequate staffing and inform Congress prior to initiating a reduction in force.

Without statutory protections “the Supreme Court has upheld the administration’s actions” with regards to the federal workforce, said Michael Fallings, managing partner at Tully Rinckey PLLC. “But it also will come down to whether the administration follows the correct procedures.”

Any additional extensions of the continuing resolutions bill would similarly renew the moratorium. However, House Minority Leader Hakeem Jeffries (D-N.Y.) said Tuesday that House Democrats would not support another stopgap bill, making a further extension unlikely.

Daniel Horowitz, legislative director at the American Federation of Government Employees, urged Congress to add the moratorium to the next appropriations bill for DHS.

“AFGE strongly supports the Kaine language to prevent widespread federal layoffs that will damage services to the American public,” Horowitz said. “Congress should act to further extend this safeguard throughout 2026.”