Unions Reach Settlement with Federal Government Over Mass Layoffs

Oct 6, 2026

The American Federation of Government Employees (AFGE), the American Federation of State, County and Municipal Employees (AFSCME), and other unions have reached a settlement with the Department of Justice (DOJ) over the Administration’s mass firing of federal employees during the 2025 government shutdown. Earlier, a federal judge had blocked the layoffs and ordered the reinstatement of employees, including vast swaths of U.S. Department of Education staff. Under the settlement, the litigation will be paused, federal agencies will be notified that the policy authorizing layoffs during government shutdowns has been withdrawn, and agencies must remove provisions allowing shutdown-related reductions in force (RIFs) from their shutdown plans. An agency seeking to restore such authority for a future shutdown must provide 30 days’ notice

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