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Top Three News Stories:

1. Judge Halts Energy Department Plan to Slash Research Funding

A federal district judge in Boston issued a temporary restraining order blocking the Department of Energy’s attempt to cap universities’ reimbursement for indirect research costs at 15 percent—a move that would have cut roughly $400 million a year from grants and triggered layoffs across federally funded laboratories. The court found that the policy was rolled out without advance notice or an opportunity for public comment and would cause “immediate and irreparable harm” to ongoing projects at MIT, Princeton, Caltech, and other institutions. For DOE employees who administer research contracts or rely on these grants for their own positions, the ruling preserves current funding streams and averts near‑term furloughs. A hearing on whether to convert the TRO into a preliminary injunction is set for April 28. Reuters

Legal Insight: 

The court’s order signals that the policy is likely “arbitrary and capricious” under the Administrative Procedure Act because DOE bypassed required notice‑and‑comment rulemaking. By attempting to repurpose congressionally appropriated grant funds, the department also risked violating the Impoundment Control Act and the Anti‑Deficiency Act. If permanent relief is granted, any subsequent workforce reductions or contract terminations tied to the cost cap could expose DOE to back‑pay liability under 5 U.S.C. § 5596. Federal employees involved in grant administration should document compliance efforts to avoid personal accountability for unlawful disbursement decisions.

2. Trump Administration Eyes Deep Cuts—and Major Layoffs—at HHS

The White House is circulating a proposal to shrink the Department of Health and Human Services discretionary budget by more than 30 percent, eliminating dozens of public‑health programs and consolidating key functions into a new “Administration for Healthy America.” Politico reports that over 20,000 HHS employees have already been let go or accepted buyouts as Secretary Robert F. Kennedy Jr. implements the plan. The draft would slash the NIH and CDC by more than 40 percent and halt routine FDA food‑facility inspections, transferring those duties to state governments. If enacted, many career civil‑service positions would disappear or migrate to newly created entities, reshaping the federal public‑health workforce for years. Politico

Legal Insight:

Because Congress, not the Executive Branch, sets agency funding levels, HHS cannot unilaterally abolish statutory programs or positions without new appropriations or authorizing legislation; doing so could breach 31 U.S.C. §§ 1301–1341 and trigger Anti‑Deficiency Act violations. Mass layoffs must still comply with 5 C.F.R. Part 351 (RIF procedures), including retention registers and veterans’ preference rights—failure to do so invites MSPB appeals. Curtailing FDA inspections could also violate mandatory inspection cycles in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. § 374). Unions would have a strong basis to demand bargaining over the impact and implementation of any reorganizations under 5 U.S.C. § 7106(b)(2)–(3).

3. Lawmakers Warn White House: Stop Using Unapproved AI to Police Federal Workforce

Forty‑seven House Democrats sent a letter to the Office of Management and Budget demanding an immediate halt to the Department of Government Efficiency’s deployment of Elon Musk’s “Grok” AI system, which is reportedly scanning federal employee communications for “anti‑administration” sentiment. The lawmakers argue the system lacks FedRAMP authorization, raises severe cybersecurity and privacy risks, and may allow Musk to profit from government data while serving as a special government employee. They also question whether DOGE is using AI to drive proposed staffing cuts without due process. The letter calls for a full accounting of every AI tool now in use across agencies and insists that any unapproved systems be shut down until they pass formal review. Reuters

Legal Insight:

Mindful Moment of the Day: