A federal judge has blocked USDA’s reorganization indefinitely, halting the planned relocation of about 2,600 Washington-area employees to regional hubs while a union lawsuit proceeds. The move of the U.S. Forest Service headquarters to Salt Lake City is among the plans on hold.
U.S. District Judge Vince Chhabria granted the stay Tuesday, extending the temporary administrative stay he first issued in September. He found that the plaintiffs, a coalition of federal unions, are likely to succeed in arguing that the reorganization violates a fiscal 2026 appropriations provision barring USDA from reorganizing without congressional approval. The order blocks USDA from using appropriated funds on the reorganization. USDA must stop issuing and enforcing all management-directed reassignment (MDR) letters and halt any reassignments or relocations already underway. It has two business days to notify employees and post the ruling on its website.
The 2,600 affected employees make up more than half of USDA’s workforce in the region and would have moved to hubs in Raleigh, Kansas City, Indianapolis, Fort Collins, and Salt Lake City.
Chhabria said the stay may not last long. The provision blocking the reorganization is part of the continuing resolution that expires December 11, and Congress could decide not to extend it, which would let USDA go ahead. The Justice Department and USDA Deputy Secretary Stephen Vaden have also said they are prepared to appeal. Chhabria has said he will not pause his order pending appeal, so the government would need to seek a stay from the 9th Circuit.
IAM Member Impact: Volume from USDA relocations is now frozen. If Congress does not renew the restriction in December, or the 9th Circuit grants a stay, MDR deadlines could be reinstated and moves could resume quickly, possibly in early 2027. Members should follow the December funding negotiations and any appeal closely.
Source: Federal News Network; Government Executive; DTN