Court Puts USDA Reorganization on Pause

Oct 20, 2026 | Congressional Notes, Featured Article, News, Policy Analysis, Policy Briefing, Press Release, Publications

TULSA, OK – On October 13, 2026, the judge overseeing the USDA reorganization case issued a stay, temporarily pausing USDA’s reorganization activities. USDA and its agencies may not:  

  • Close or eliminate offices  
  • Relocate or reassign employees based on reorganization activities  
  • Enforce any deadlines or directives of management-directed reassignment letters  

The order does not require offices that have already closed to reopen. Employees who have already moved also do not have to return to their previous office locations.  

The judge issued the stay after finding that USDA likely violated restrictions on how it may use funds Congress allocated. The relevant appropriations law prohibits USDA from using those funds for ‘reprogramming activities’.  

The court has not yet made a final decision. However, the judge found that the reorganization could harm employees in ways that would be difficult to reverse, including forced moves and the possible loss of jobs, wages, and benefits. The judge also concluded that pausing the reorganization serves the public interest by enforcing Congress’s spending restrictions and preventing disruptions to programs such as SNAP, WIC, wildfire management, and agricultural research.  

The stay will remain in effect until at least December 11, 2026, when the current legal restriction on USDA’s reorganization activities expires. Congress could extend the current appropriations law or pass a new law for the next fiscal year. USDA would need to work with Congress to change the restrictions.  

The plaintiffs originally asked the judge to issue a preliminary injunction. Instead, the judge issued a stay under Section 705 of the Administrative Procedure Act. A preliminary injunction generally applies only to the parties involved in a case. (See Trump v. Casa, 606 U.S. 831 (2025), holding that universal injunctions likely exceed the equitable authority that Congress has given to federal courts). The judge used Section 705 to ensure the pause applies to all affected employees, including those not represented by the unions that filed the lawsuit. Section 705 authorizes courts to postpone agency actions while a legal challenge is pending.  

On October 15, USDA filed an appeal with the Ninth Circuit Court of Appeals challenging the stay. The appeal could determine whether the pause remains in effect or whether USDA may continue its reorganization while the case proceeds. USDA’s opening brief is due November 13, 2026.