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Federal Worker Dismissals Blocked as US Court Extends Shutdown Moratorium

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San Francisco: A federal judge in California has decided to keep in place a nationwide pause on the dismissal of government employees as the United States continues to grapple with a prolonged government shutdown.

U.S. District Judge Susan Illston issued the order on Tuesday, converting her earlier temporary injunction into an indefinite stay. The prior order had been set to lapse midweek, but Illston ruled that maintaining the moratorium was necessary while legal challenges proceed.

Appointed to the bench by former President Bill Clinton, Judge Illston wrote that evidence presented so far strongly suggests that the government lacked legal grounds for the widespread job terminations initiated during the shutdown.

Federal agencies have issued roughly 4,100 layoff notices since the shutdown began on October 1, according to court filings. However, the judge clarified that her ruling does not affect notices sent before that date. Reports indicate that some federal workers were briefly recalled—without pay—so that additional dismissal notices could be distributed.

A government shutdown occurs when Congress fails to approve new funding legislation, leaving agencies without the budget authority to operate normally. Until lawmakers reach a spending agreement, many federal employees remain furloughed, and critical services continue to face disruptions.

Judge Illston’s decision offers temporary relief for thousands of public workers as the broader legal and political disputes over the shutdown remain unresolved.

All news on Encounter News is computer-generated and sourced from third parties. Please read and verify carefully. We will not be responsible for any issues. 

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