The State Department said on Jan. 9, 2026, it will move forward with 250 Foreign Service layoffs despite a federal court order. The Trump administration argues the Dec. 17, 2025, preliminary injunction only delays the layoffs through Jan. 30, 2026, but doesn't reverse them. Roughly 250 foreign service officers are covered by the court order according to Foreign Policy reporting.

Judge SISusan Illston in San Francisco issued a preliminary injunction on Dec. 17, 2025, ordering State, Education, Small Business Administration, and General Services Administration to rescind reduction-in-force notices. The order covered employees terminated between Oct. 1 and Nov. 12, 2025, the dates of the government shutdown. Illston gave agencies until Dec. 23 to carry out the injunction's terms 'absent a contrary ruling from a higher court.'

Justice Department attorneys argued that rescinding layoffs now would be 'logistically a big lift' for agencies, especially if courts later allow them to proceed. Government lawyers said State shouldn't have to 'go back in time' to unwind actions from July when the RIF process began. The administration interprets the injunction as a temporary delay, not a mandate for full employee reinstatement.

The preliminary injunction stated that 'Defendants must do what the continuing resolution says. They may not take any further steps to implement or carry out a RIF through January 30, 2026, regardless of when the RIF notice first issued.' The continuing resolution language appears to bar RIF implementation during the funding period. But the administration argues it can finalize layoffs that were noticed before the shutdown.

The federal government dropped its appeal challenging the court order on Jan. 2, 2026. Despite dropping the appeal, the administration maintains its interpretation that the order doesn't require reversing completed layoffs. This legal position leaves hundreds of diplomats uncertain about their employment status as Jan. 30 approaches.

The layoffs are part of broader federal workforce reductions Trump ordered. The administration conducted mass layoffs across seven agencies on Oct. 10, terminating around 4,000 people. Those reductions are currently blocked under court orders. State Department employees and the American Federation of Government Employees argue the cuts gut diplomatic capacity at a critical time for foreign policy.

Foreign service officers affected by the layoffs include career diplomats with decades of experience. State Department officials haven't provided details on which positions or expertise areas are targeted. The American Federation of Government Employees represents many affected workers and has fought the layoffs in court. Union representatives say the reductions eliminate institutional knowledge and weaken America's diplomatic capabilities.