A federal judge appointed by President Biden has temporarily blocked the Trump administration’s sweeping overhaul of the Department of Health and Human Services (HHS), halting the planned layoffs of 20,000 employees and the consolidation of regional offices following a lawsuit led by 19 Democrat attorneys general. The Tuesday ruling by U.S. District Judge Melissa DuBose prevents the administration from enforcing its cost-cutting reorganization plan while legal challenges play out.

The Trump administration had announced the dramatic restructuring in March, arguing that HHS had become bloated and inefficient, draining taxpayer resources while failing to address core public health challenges. Under the plan, HHS would reduce staff, close and merge offices, and refocus on priorities such as reversing chronic diseases and advancing U.S. leadership in biomedical research. HHS spokesperson Andrew Nixon defended the plan after the ruling, stating that it aimed to transform a bureaucracy that had “prioritized institutional preservation over meaningful public health impact.”

Democrat attorneys general, led by New York’s Letitia James, argued the layoffs and structural changes would undermine critical services like cancer screenings, maternal care, early childhood programs, and domestic violence prevention. In her statement, James declared the ruling “guarantees these programs and services will remain accessible and halts the administration’s attempt to sabotage our nation’s healthcare system.”

The lawsuit is part of a broader series of blue-state legal challenges seeking to slow or block Trump’s “America First” governance reforms, which have targeted federal bureaucracies for deep cuts, decentralization, and reorientation toward measurable results. Trump, who has prioritized cutting the federal workforce in his second term, has repeatedly argued that entrenched agencies drain resources while producing little for taxpayers.

The judge’s ruling requires HHS to file a status report by July 11 and calls for both sides to explain how a recent Supreme Court decision limiting nationwide injunctions against presidential actions may impact the scope of her order.

HHS Secretary Robert F. Kennedy Jr., who has led the agency’s reorganization efforts, admitted earlier this year that some staffing cuts had gone too far, telling CBS News in April that the agency planned to reinstate about 20% of staff who had been let go. “That was always the plan. We talked about this from the beginning: we’re going to do 80% cuts, but 20% will have to be reinstated because we’ll make mistakes,” Kennedy said.

Despite the setback, HHS leaders say they remain committed to reform. Nixon noted that the plan was designed to refocus the agency on tangible health outcomes, and the administration is reviewing the ruling while preparing next steps to continue its push for a leaner, results-driven federal health system.

Meanwhile, the lawsuit intensifies political and legal battles over the federal workforce, with blue states fighting to preserve programs and jobs while the Trump administration pushes to reduce what it views as entrenched inefficiency. The case also sets the stage for a wider confrontation between state attorneys general and Trump’s broader executive orders, as the president continues his mission to shrink and restructure the federal government while facing court challenges from Democrat-led states determined to protect legacy programs.

As Trump looks to accelerate his second-term agenda, the fate of the HHS overhaul will test the administration’s ability to drive rapid change within the federal government, and the outcome could shape future efforts to streamline agencies across Washington.