HHS Argues for Continued Layoffs Amid Government Shutdown, Despite Judge's Order

The U.S. Department of Health and Human Services (HHS) is contending that it can proceed with laying off nearly 1,000 employees, despite a recent court order temporarily halting federal worker layoffs during the ongoing government shutdown. This development comes as the shutdown enters its fourth week, with negotiations between Democrats and Republicans at a standstill over healthcare policy issues.

HHS Challenges Court Order on Layoffs

Thomas Nagy, the head of personnel at HHS, argued in a court filing that the 982 HHS employees who received reduction-in-force (RIF) notices are not represented by the unions that filed the lawsuit seeking to halt the layoffs. As a result, Nagy claims that the temporary restraining order issued by Judge Susan Illston of the California Northern District does not apply to these workers.

The court order, which Judge Illston granted on Wednesday, was in response to a case brought by the American Federation of Government Employees and the American Federation of State, County and Municipal Employees. In her ruling, Judge Illston stated that the case was likely to succeed, citing that the Trump administration's actions appeared politically motivated and illegal.

Impact on HHS Operations and Workforce

Prior to the current administration taking office in January, HHS employed approximately 82,000 people. Since then, the department's staff has been reduced to about 79,700 due to voluntary resignations and previous layoffs. The shutdown has further impacted HHS operations, with 32,000 workers currently on furlough.

The department has significantly scaled back its activities, including:

• Halting oversight of research grants and contracts
• Pausing data collection and analysis
• Ceasing responses to public requests for information

While federal healthcare programs such as Medicare, Medicaid, and the Children's Health Insurance Program are largely unaffected by a brief shutdown, other critical areas have been impacted. Notably, the Centers for Disease Control and Prevention (CDC) has seen a concentration of layoff notices, affecting staff responsible for key public health initiatives.

Broader Implications of the Shutdown

The government shutdown, now in its fourth week, stems from an impasse between Democrats and Republicans over the future of Affordable Care Act subsidies. Democrats are pushing for action on this issue as a condition for reopening the government, while Republicans argue for postponing the discussion.

The shutdown has created uncertainty in various sectors of healthcare. Medicare funding for telehealth and hospital-at-home services has been halted, and there was brief confusion regarding Medicare payments to physicians after the Centers for Medicare & Medicaid Services initially announced a pause in all payments, only to quickly reverse the statement.

As negotiations between political parties remain stalled, the Senate is set to vote on the GOP's clean funding bill for the 11th time, with expectations that it will fail again. The ongoing situation continues to raise concerns about the long-term impacts on public health and healthcare services across the nation.