Trump Administration Settles with Federal Unions Over Government Shutdown Reduction in Force Actions

The Trump Administration has reached a settlement with federal unions, including the American Federation of Government Employees (AFGE), the American Federation of State, County, and Municipal Employees (AFSCME), and the National Treasury Employees Union (NTEU), regarding reduction in force (RIF) actions taken during last year's government shutdown. The settlement mandates that federal agencies rescind all RIF notices issued between October 1, 2025, and November 12, 2025, and reinstates all 4,200 affected employees to their positions. This resolution follows a year of litigation and places limits on the administration's ability to use federal workers as bargaining chips during future shutdowns.