The American Federation of Government Employees (AFGE) and American Federation of State, County, and Municipal Employees (AFSCME) have filed a lawsuit against the Trump administration, challenging that the president’s threats to fire large numbers of federal employees if the federal government shuts down on October 1.

In their lawsuit, the unions argue that Trump’s threats of mass firings both punish and traumatize federal workers.

Normally, “excepted” federal employees continue working without pay until government funding is restored during shutdowns, while “non-excepted” employees are furloughed and receive back pay at a later date.

In the lawsuit, the unions claim that the Office of Management and Budget (OMB), led by Russ Vought, and the Office of Personnel Management (OPM), led by Scott Kupor, have broken federal law by encouraging the dismissal of federal employees if “congressional Democrats” do not accept the Trump administration’s budget proposals and the government shuts down.

The Associated Press reported that the OMB told agencies to “consider a reduction in force for federal programs whose funding would lapse next week, [are] not otherwise funded, and [are] ‘not consistent with the President’s priorities.’” It’s a move that is seen as an attempt to have the funding crisis help push the administration’s priorities, such as funding Customs and Border Protection work and cutting programs frequently used in Democrat-dominant states.

“Announcing plans to fire potentially tens of thousands of federal employees simply because Congress and the administration are at odds on funding the government past the end of the fiscal year is not only illegal –– it’s immoral and unconscionable,” said Everett Kelley, AFGE national president. “Federal employees dedicate their careers to public service — more than a third are military veterans — and the contempt being shown them by this administration is appalling.”

AFSCME President Lee Saunders tied the administration’s actions to a broader political blueprint. “The Trump administration is once again breaking the law to push its extreme Project 2025 agenda, illegally targeting federal workers with threats of mass firings due to the federal government shutdown,” he stated.

The unions contend that the plan violates laws governing shutdowns, including the Anti-Deficiency Act, and strips employees of their right to back pay. If the mass firings take place, Saunders warned, essential employees who “keep our skies safe for travel, our food supply secure, and our communities protected will lose their jobs.”

The governmental budget dispute centers on the Democrats’ desire to extend Affordable Care Act (ACA) tax credit subsidies, which were introduced during the pandemic and are set to expire at the end of 2025. Congressional Democrats argue that not extending the credits could lead to higher insurance premiums and even the loss of health coverage for millions of low- and middle-income households.

“The Trump administration’s threats to engage in mass firings of federal employees … to gain political advantage and carry out its agenda to dismantle the federal government are in direct contravention of the laws that govern federal government shutdowns,” said Stacey Leyton of Altshuler Berzon LLP, legal counsel for the unions. “The administration must act within the constraints of applicable law, and we will ask the federal courts to hold them accountable to that obligation.”

The unions are asking the federal courts to declare that the OMB unlawfully exceeded its statutory authority in ordering the shutdown firings and to invalidate any agency actions taken under this order.

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