Federal Judge Blocks Trump Administration’s HHS Restructuring Plan

A federal judge on Tuesday blocked the Trump administration from implementing a controversial plan to restructure the U.S. Department of Health and Human Services (HHS), halting an initiative that aimed to lay off 10,000 employees and dismantle key public health infrastructure.

U.S. District Judge Melissa DuBose issued the injunction in a Providence courtroom in response to a lawsuit brought by 19 Democratic-led states and the District of Columbia. The challenge targeted the restructuring blueprint announced in March by HHS Secretary Robert F. Kennedy Jr., which had become a central pillar of President Donald Trump’s “government efficiency” drive, led by tech mogul Elon Musk.

Details of the Blocked Plan

The HHS restructuring plan proposed consolidating 28 internal divisions into 15, shutting down five of the department’s 10 regional offices, and executing mass layoffs of nearly 10,000 employees—almost 20% of the agency’s workforce. According to court filings, these moves were already in motion: buyout incentives and firings of probationary staff had slashed the number of full-time employees from 82,000 to 62,000 by mid-June.

The legal complaint cited immediate harms already being felt nationwide: infectious disease labs at the Centers for Disease Control and Prevention (CDC) had reportedly closed, federally funded Head Start programs faced discontinuation in several states, and HHS partners were suspending research collaborations.

Legal Grounds for the Injunction

Judge DuBose ruled that the plaintiffs—led by New York Attorney General Letitia James—had presented sufficient evidence that the HHS overhaul plan likely violated the Administrative Procedure Act (APA), which prohibits federal agencies from making arbitrary or capricious decisions without public input or legal authority.

She also confirmed that a number of terminations scheduled to take effect on Monday were reversed following internal legal advice issued just before the court’s injunction.

Press Statement from Attorney General Letitia James

NEW YORK – July 1, 2025 — New York Attorney General Letitia James today announced a major legal victory after securing a preliminary injunction halting the Trump administration’s plan to restructure the U.S. Department of Health and Human Services (HHS). The ruling blocks mass layoffs and closures affecting crucial programs such as Head Start, infectious disease labs, and maternal health data collection.

On May 5, Attorney General James led a coalition of 19 states and the District of Columbia in filing a lawsuit to stop the restructuring plan introduced by HHS Secretary Robert F. Kennedy Jr.. The court agreed that the plan posed an immediate threat to public health operations and social safety net services.

The lawsuit alleged that the March 27 restructuring—collapsing 28 agencies into 15 and terminating 10,000 employees—had already shut down or disrupted essential HHS operations. Many employees were locked out of their systems without formal notice. Programs suspended included:

• Federal support for Head Start centers
• Maternal health data collection
• Infectious disease monitoring by the Centers for Disease Control and Prevention (CDC)
• The federal team responsible for poverty guideline calculations affecting SNAP, Medicaid, and housing aid

Judge Melissa R. DuBose’s order specifically blocks terminations across the following four divisions:

• The CDC, including the National Institute of Occupational Safety and Health
• The Center for Tobacco Products
• The Office of Head Start
• The Office of the Assistant Secretary for Planning and Evaluation

The multistate coalition supporting the lawsuit includes attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Michigan, Maryland, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.

National Implications

The decision may have far-reaching implications for federal executive authority. Legal experts suggest it could set a precedent for challenging future agency overhauls, especially those impacting health, safety, or regulatory programs. It also represents a significant check on the Trump administration’s broader agenda to streamline or privatize large parts of the federal bureaucracy.

Meanwhile, administration officials have not yet commented publicly on whether they plan to appeal the ruling. HHS spokespersons referred inquiries to the Department of Justice, which has yet to issue a formal statement.

(with inputs from agencies)