A federal judge has ordered the U.S. Department of Agriculture (USDA) to immediately halt its controversial, wide-ranging reorganization, providing a temporary victory to a coalition of federal unions challenging the forced relocation of thousands of employees.
In a ruling issued Tuesday, U.S. District Court Judge Vince Chhabria granted a stay request that effectively freezes the department’s restructuring efforts while the court continues to deliberate on the merits of the lawsuit. The decision reinforces a previous temporary administrative stay issued in September.
At the heart of the legal battle is the question of whether the agency overstepped its authority by using congressionally appropriated funds to shutter offices and mandate staff transfers. In his ruling, Judge Chhabria noted that the plaintiffs are likely to succeed in their argument that the USDA’s actions violate fiscal 2026 appropriations legislation, which explicitly prohibits the department from undergoing a reorganization without the approval of Congress.
“The agency has ‘almost certainly’ reprogrammed congressionally appropriated funding,” Chhabria wrote in his order, emphasizing that these funds were utilized for purposes outside the scope of what was originally authorized by lawmakers.
The USDA’s reorganization plan, first unveiled in summer 2025, sought to move roughly 2,600 D.C.-based employees—more than half of the department’s regional workforce—to various agency hubs across the country. The administration has maintained that the move is intended to place the department’s operations closer to the communities it serves. However, the policy led to the issuance of hundreds of “management-directed reassignments” (MDRs), leaving many employees with an ultimatum: relocate or resign.
The court order explicitly directs the USDA to cease the issuance and enforcement of all MDR letters and any ongoing relocation activities. The department is now required to notify its employees of the stay within two days and must file a formal declaration of compliance with the court within one week.
While the ruling is a significant setback for the administration, Judge Chhabria acknowledged that the relief may be temporary. The legislative provision currently blocking the USDA’s reorganization is tied to a continuing resolution set to expire on December 11.
“If the agency wishes to move forward with its plans to close offices and relocate employees, it will soon have the opportunity to convince Congress of the merits of those plans,” Chhabria wrote.
Union leaders hailed the decision as a critical protection for the federal workforce. “The administration’s attempt to gut this essential agency is blatantly illegal,” said AFSCME President Patrick Moran.
The USDA stated that it is currently reviewing the judge’s decision and plans to file a formal response with the court. The stay covers numerous agency components, including the Forest Service, the Food and Nutrition Administration, and the Foreign Agricultural Service.
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