Appeals court dismisses states’ case challenging probationary employee firings

Appeals court orders dismissal of case challenging mass firing of federal employees

Last updated Sep 9, 2025

TL/DR –

A federal appeals court has ordered the dismissal of a case led by a group of states challenging the Trump administration’s mass termination of probationary federal employees. The group, which included 19 states and the District of Columbia, argued that the abrupt firings led to a sharp increase in unemployment claims and pressure on state budgets. However, the U.S. Court of Appeals for the Fourth Circuit ruled that the plaintiffs “failed to allege a cognizable and redressable injury” from the terminations.

Federal Appeals Court Dismisses Lawsuit Over Mass Firings of Probationary Workers

The U.S. Court of Appeals for the Fourth Circuit is dismissing a case filed by numerous states challenging the Trump administration’s mass termination of probationary federal employees. The lawsuit claimed that sudden mass layoffs put a strain on state budgets due to a surge in unemployment claims.

Despite the states claiming that the layoffs were not “for cause” but a reduction in workforce, the appeals court ruled that the plaintiffs “failed to allege a cognizable and redressable injury” from these workforce reductions. The Treasury Inspector General for Tax Administration (TIGTA) found that virtually all of the probationary employees that the IRS fired had no performance issues.

The court’s majority argued that the federal government has the authority to manage its workforce. However, it acknowledged that the abrupt dismissals of probationary employees had substantial human costs. Despite this, the court ruled that the surge in unemployment claims or potential decrease in tax revenue were not sufficient harm for ruling in favor of the states.

Judge DeAndrea Gist Benjamin, in her dissent, said that the court had ignored the “real harms” inflicted by not complying with reduction in force (RIF) requirements. She argued that all that was required was for the government to adhere to statutory notice requirements, something it chose not to do.

Unless this case is elevated to the Supreme Court, there remains only one federal case challenging the probationary terminations. A northern California court is considering a separate case brought by federal employee unions. A ruling is expected soon.

Contributions by Federal News Network’s Jared Serbu.

—
Read More US Political News