An appeals court Wednesday refused the Trump administration’s request to resume mass layoffs at federal health agencies as part of a restructuring effort. 

The unanimous three-judge panel on the 1st U.S. Circuit Court of Appeals declined to lift a lower order blocking the restructuring as Democratic-led states press ahead with their lawsuit. 

The 19 states, joined by the District of Columbia, sued as the Department of Health and Human Services (HHS) under Secretary Robert F. Kennedy Jr.’s leadership moved to terminate 10,000 employees and dismantle several of its sub-agencies. 

U.S. District Judge Melissa DuBose, an appointee of former President Biden, blocked the restructuring in July by finding it was likely unlawful.  

It halts mass layoffs at four offices under HHS: the Center for Tobacco Products, the Office of Head Start, components of the Centers for Disease Control and Prevention and the Office of the Assistant Secretary for Planning and Evaluation. 

In its appeal, the administration contended the states have no legal right to sue, federal law requires their claims to go before an agency that guards the federal employee merit system rather than a court, and the restructuring is lawful, anyways. 

The argument heavily relies on a July ruling from the Supreme Court enabling the Education Department to lay off roughly half its employees.  It became the latest battle over how to interpret the high court’s recent emergency orders siding with the administration, which have often come with no or little explanation. 

“The Supreme Court has clearly determined that agencies should be able to proceed with their restructuring efforts while litigation proceeds, even in the face of all the legal and equitable arguments that plaintiffs advance here,” the Justice Department wrote in court filings. 
The states pushed back, arguing the justices’ ruling “says nothing about the district court’s conclusions regarding the distinct factual record and narrow preliminary relief here.” 

The 1st Circuit panel comprised U.S. Circuit Judges Lara Montecalvo, Julie Rikelman and Seth Aframe, all nominated to the bench by former President Biden.

With the panel rejecting the administration’s emergency plea, it could now attempt to seek relief from the Supreme Court.