Federal judge blocks USDA employee relocation and reorganization

A federal judge in San Francisco has issued an indefinite stay blocking the U.S. Department of Agriculture (USDA) from proceeding with a major reorganization plan that would relocate approximately 2,600 employees.

U.S. District Court Judge Vince Chhabria ruled that there is “strong evidence” the agency’s activities deviate from congressional expectations. The court found that the USDA was essentially “reprogramming” funds in a manner not intended by Congress, which had included provisions in recent appropriations bills to prevent the relocation of offices or employees without specific approval from House and Senate committees.

The ruling halts reorganization efforts across several agencies, including the Forest Service, the Agricultural Research Service, and the Food and Nutrition Administration. The stay specifically prohibits the USDA from closing offices or enforcing relocation notices that would move staff outside their local commuting areas.

A coalition of labor unions, nonprofits, and local governments brought the suit, arguing the overhaul would weaken essential services such as foreign aid, nutrition programs, and trade. The American Federation of State, County & Municipal Employees described the administration’s plan as “blatantly illegal.” The USDA stated it is reviewing the decision and intends to file a response.