Proper Parties, Proper Relief: Fourth Circuit Bars State Standing to Enjoin Federal Workforce Reductions Based on Missed RIF Notice
Case: State of Maryland v. USDA (consolidated appeals Nos. 25-1248 & 25-1338)
Court: United States Court of Appeals for the Fourth Circuit
Date: September 8, 2025
Disposition: Vacated with directions to dismiss (Judge Wilkinson for the Court, joined by Judge Rushing; Judge Benjamin dissented)
Introduction
This case arises from a high-profile, rapid effort by the federal government—post–January 2025—to reduce the size of the federal workforce by directing agencies to separate large numbers of probationary employees. Nineteen States and the District of Columbia sued twenty-one federal agencies and officials, alleging the separations were, in substance, reductions in force (RIFs) executed without compliance with statutory and regulatory safeguards, most notably the 60-day State-notice requirement in 5 U.S.C. § 3502(d) and 5 C.F.R. Part 351.
The plaintiffs obtained a temporary restraining order and then a preliminary injunction in the District of Maryland restoring the status quo for “Affected Probationary Employees” and barring further separations absent compliance with “all applicable” RIF and personnel laws. On interlocutory appeal, the Fourth Circuit stayed the injunction and, after full briefing and argument, vacated and ordered dismissal for lack of Article III standing.
The core question before the Fourth Circuit was not whether the federal government lawfully separated the probationary employees. It was narrower: whether the States, based on the absence of RIF notice and downstream fiscal burdens, are the “proper parties” seeking the “proper relief” to adjudicate alleged illegality in federal personnel actions. The Court’s answer—grounded in standing and redressability—establishes an important precedent limiting State challenges to federal workforce management.
Summary of the Opinion
The Fourth Circuit held that the States lacked Article III standing to pursue the sweeping injunctive relief they requested. The Court reasoned as follows:
- No cognizable injury-in-fact from the missed 60-day notice and downstream budgetary effects, when viewed in the context of a “traditionally federal” function—management of the federal workforce. Past expenditures could not support prospective injunctive relief, and future or indirect fiscal impacts (e.g., tax revenue loss, social services increases) were too attenuated and generalized for standing, especially given federalism concerns (United States v. Texas).
- Redressability failure due to a “mismatch” between the States’ informational injury and their requested equitable relief. The complaint sought indefinite reinstatement and judicial oversight to ensure compliance with the full suite of RIF and personnel rules—remedies that principally vindicate the rights of non-party employees and far exceed what would address the States’ own notice injury.
- CSRA exclusivity underscores lack of redressability: Congress provided a comprehensive, exclusive scheme for federal employees to challenge personnel actions through the MSPB and the Federal Circuit (Elgin; Fausto). That structure signals the unavailability of sweeping district-court injunctions at the behest of States to supervise agency personnel decisions.
Accordingly, the panel vacated the district court’s preliminary injunction and remanded with instructions to dismiss. Judge Benjamin dissented, concluding that the States suffered a cognizable informational injury with concrete adverse effects and that the relief requested (adequate notice coupled with forbearance) was tethered to the integrated RIF framework and thus redressable.
Analysis
A. Precedents Cited and Their Influence
- Murthy v. Missouri (603 U.S. 43, 2024): Reaffirmed that Article III limits courts to cases and controversies and that plaintiffs seeking injunctive relief must show a sufficient likelihood of future injury. The majority relies on Murthy for both justiciability framing and the admonition that States cannot sue the federal government as parens patriae.
- Thole v. U.S. Bank (590 U.S. 538, 2020): Supplies the three-part standing test—injury in fact, causation, redressability. The majority applies Thole to enforce threshold limits before reaching any merits.
- Spokeo, Inc. v. Robins (578 U.S. 330, 2016) and TransUnion LLC v. Ramirez (594 U.S. 413, 2021): Emphasize that statutory violations alone do not create concrete injuries; informational harms require real, downstream adverse effects with a close historical analogue. The Court uses these decisions to examine and narrow the States’ “informational injury.”
- FEC v. Akins (524 U.S. 11, 1998) and Public Citizen v. DOJ (491 U.S. 440, 1989): Recognize informational injuries in some contexts, but the majority distinguishes those cases because the State-notice provision here is only one piece of a federal personnel regime primarily protecting employee rights, and plaintiffs sought sweeping relief beyond the missing information.
- United States v. Texas (599 U.S. 670, 2023): The lynchpin for the majority’s federalism and separation-of-powers framing. Texas cautions against States invoking federal courts to supervise executive discretion where their claimed harms are indirect programmatic or fiscal costs. The majority extends that caution to federal personnel management as a “traditionally federal” function, finding the States’ harms insufficiently judicially cognizable in context.
- Sampson v. Murray (415 U.S. 61, 1974) and Arnett v. Kennedy (416 U.S. 134, 1974): Recognize the federal government’s “widest latitude” in administering its internal personnel affairs, buttressing the conclusion that States cannot leverage indirect harms to police federal workforce composition.
- Allen v. Wright (468 U.S. 737, 1984), Warth v. Seldin (422 U.S. 490, 1975), Davis v. FEC (554 U.S. 724, 2008), Lewis v. Casey (518 U.S. 343, 1996), DaimlerChrysler v. Cuno (547 U.S. 332, 2006), Steel Co. v. Citizens for a Better Environment (523 U.S. 83, 1998): These decisions reinforce that standing “is not dispensed in gross,” that remedies must be no broader than necessary to redress the plaintiff’s own injury, and that courts must scrutinize the fit between injury and requested relief.
- Arizona v. Biden (40 F.4th 375, 6th Cir. 2022) and United States v. Richardson (418 U.S. 166, 1974): Support the majority’s skepticism of “peripheral cost” standing (tax receipts, social services), analogizing to disfavored taxpayer standing and emphasizing attenuation.
- Elgin v. Department of Treasury (567 U.S. 1, 2012) and United States v. Fausto (484 U.S. 439, 1988): Establish the exclusivity of the Civil Service Reform Act (CSRA) review scheme for employee challenges, which the majority cites as a structural reason why broad injunctive relief policing personnel law is not “available” to State plaintiffs in district court.
- Trump v. CASA, Inc. (145 S. Ct. 2540, 2025), Madsen v. Women’s Health Center (512 U.S. 753, 1994), and Califano v. Yamasaki (442 U.S. 682, 1979): Cited for the remedy-limitation principle—plaintiffs seeking sweeping equitable orders must tell a correspondingly strong and tailored standing story.
- Academic sources (Baude & Bray, Proper Parties, Proper Relief; Bray & Miller, Getting into Equity): Invoked to underscore the “standing–remedy connection” and the equitable norm against using a “trifle of grievance” to extract “massive” judicial supervision.
B. The Court’s Legal Reasoning
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Injury-in-fact: informational harm in a federalism-sensitive context
- The States framed their injury as (i) loss of information (missing 60-day notice) and (ii) loss of lead time to prepare “rapid response” services, with associated near- and long-term costs. The majority holds that past expenditures cannot justify prospective injunctive relief (O’Shea), and that future or indirect costs do not become cognizable simply by legislative declaration; plaintiffs must show a concrete, non-attenuated harm with a close historical analogue (TransUnion; Spokeo; Dreher).
- Context matters: management of the federal workforce is “a traditionally federal function,” making generalized fiscal reverberations especially ill-suited as judicial injuries for State plaintiffs (Texas; Sampson; Arnett). Recognizing such harms would “cede” federal sovereignty by inviting State suits over innumerable federal actions with budgetary ripple effects.
- “Peripheral costs” (reduced tax revenue, increased social services processing) are too far downstream and too widely shared to ground Article III injury, akin to disfavored taxpayer standing (Arizona v. Biden; Richardson).
- The Court also rejects a parens patriae theory in disguise: States may not sue the federal government to vindicate their citizens’ interests (Murthy; Haaland v. Brackeen, quoted in Murthy).
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Redressability: the standing–remedy mismatch
- Standing must be shown for each form of relief. Here, the complaint’s prayer did not ask merely for notice or a short pause; it sought indefinite reinstatement and a sweeping prohibition on any future separations unless agencies complied with “the RIF requirements” and “all applicable laws.”
- That relief primarily vindicates federal employees’ rights (e.g., competitive areas, competitive levels, retention registers, individualized determinations) and enlists the district court to police an entire personnel regime for non-parties—precisely what equitable and standing doctrines forbid (Allen; Warth; Davis; Lewis; Cuno).
- Because the relief overshoots the States’ asserted informational injury and would make the court an ongoing supervisor of the Executive’s internal affairs, redressability fails. The article III defect lies not only in the district court’s order but in the scope of the relief the States themselves sought.
- The majority notes that a tailored injunction compelling provision of the missing information, or a time-limited pause (e.g., 60 days) to restore lost lead time, might conceptually match the asserted injury. But it does not decide the availability of such relief, emphasizing instead that the States did not request such narrow remedies.
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CSRA exclusivity as a backdrop
- Congress routed individual federal employment disputes through the MSPB with review in the Federal Circuit, signaling that district courts are not general overseers of federal personnel law (Elgin; Fausto). That “reticulated scheme” reinforces that the States’ broad injunction was not a form of relief federal courts may provide to these plaintiffs, further undermining redressability.
C. The Dissent’s Perspective
- Injury-in-fact: Judge Benjamin would find a concrete informational injury flowing from a statutory entitlement to notice (5 U.S.C. § 3502(d)) and real adverse effects—surges in unemployment claims, diverted resources for rapid-response programs, and fiscal burdens the statute itself anticipates States will face without notice.
- Texas is distinguishable: That case targeted discretionary non-enforcement and sought to force more arrests; here, the States seek compliance with a nondiscretionary notice mandate. The harms are directly tied to a statutory breach, not merely budgetary sequelae of policy choices the Executive was permitted to make.
- Integrated RIF framework: Because the RIF notice rule presupposes predicate determinations (competitive areas, etc.), meaningful redress requires notice “followed by forbearance”—a pause in terminations until required procedures are satisfied. The dissent rejects the majority’s reading of the complaint as seeking to vindicate employees’ rights.
- CSRA does not displace the States’ own notice right: The States are not seeking employee remedies under the CSRA; they are asserting a separate, statutory entitlement to notice owed to them “as state qua states.”
D. The Doctrinal Throughline: Proper Parties, Proper Relief
The opinion crystallizes a stringent version of the standing–remedy nexus. Even assuming an informational injury, the remedy must closely track the injury and remain within the zone of relief traditionally available and compatible with federalism and separation-of-powers limits. Where plaintiffs ask a district court to supervise compliance with “all applicable” federal personnel law—principally for the benefit of non-party employees—Article III bars the courthouse door. That conclusion is fortified when Congress has already created an exclusive administrative-judicial channel for those very personnel disputes (CSRA).
Impact
- State challenges to federal personnel actions will face higher jurisdictional hurdles. Fiscal ripple effects and operational burdens stemming from federal workforce decisions will rarely qualify as cognizable injuries for States, especially when the relief sought polices employee-centric regimes. Attempts to litigate broad “composition of the federal workforce” disputes via parens patriae theories are foreclosed.
- Informational-injury suits must be precisely calibrated. Where Congress affords States notice rights, future litigation must target the missing information and any immediate temporal harms. Practically, that means requesting orders to produce the required notice and, if justified, short, fixed pauses aligned with statutory periods (e.g., 60 days), not open-ended reinstatement or “all-laws-compliance” injunctions.
- Nationwide and deep structural injunctions are disfavored. The opinion reinforces skepticism of broad equitable decrees—especially those that functionally supervise the Executive’s internal administration or benefit non-parties. Plaintiffs seeking expansive remedies must meet an exacting standing showing tailored to that breadth.
- CSRA exclusivity remains a strong backdrop constraint. Disputes over RIFs, individualized performance-based separations, and related personnel protections belong in the CSRA’s administrative and Federal Circuit channel. District-court remedies that effectively substitute for CSRA review will be deemed unavailable to non-employee plaintiffs.
- Federalism and separation-of-powers guardrails are tightened. By analogizing to United States v. Texas and invoking the “traditionally federal” nature of workforce management, the court signals that States cannot convert collateral programmatic costs into roving authority to supervise federal operations.
- Blueprint for future plaintiffs. The majority hints that a narrowly tailored approach—seeking (i) delivery of the information the statute requires and/or (ii) a one-time, time-limited pause to restore lost preparation time—might avoid the mismatch problem. But success would still require concrete, prospective harms and a tight causal link.
Complex Concepts Simplified
- Informational injury: A plaintiff’s concrete harm from being denied information that a statute entitles them to receive. Not every statutory denial suffices; plaintiffs must show real-world adverse effects from the missing information.
- Redressability: The requirement that the court can likely provide relief that fixes the plaintiff’s injury. If the requested remedy benefits third parties, is broader than necessary, or is unavailable given other statutes, redressability fails.
- Standing–remedy mismatch: Even when a plaintiff has some injury, standing fails if the relief sought is out of proportion to (or untethered from) that injury or enlists courts to supervise matters beyond their constitutional role.
- Parens patriae: A State’s attempt to sue to protect its residents’ interests. States cannot sue the federal government in parens patriae; they must assert their own concrete injuries.
- Reduction in Force (RIF): A formal process for layoffs due to reorganization or lack of work. Federal law and regulations require detailed steps (e.g., defining competitive areas and levels, retention registers) and, when 50+ employees in a competitive area are to be separated, notice to States 60 days in advance, subject to limited emergency shortening.
- CSRA, MSPB, and Federal Circuit review: The Civil Service Reform Act channels employee challenges to personnel actions to the Merit Systems Protection Board, with judicial review in the Federal Circuit. This exclusive path is designed to handle employee-centric rights and remedies.
Conclusion
State of Maryland v. USDA is a forceful application of Article III’s gatekeeping requirements to State suits challenging federal personnel actions. The Fourth Circuit’s message is twofold. First, informational injuries must be concrete and, when asserted by States against the federal government, cabined by federalism-sensitive considerations. Second, the requested remedy must be tightly tailored to that injury; courts will not entertain expansive injunctions that effectively supervise Executive Branch personnel management or vindicate non-party employees’ rights—especially against the backdrop of the CSRA’s exclusive review scheme.
Judge Benjamin’s dissent underscores a competing vision: that the RIF notice regime is integrated, and meaningful redress requires not just information but temporary forbearance. The majority, however, treats that integrative view as precisely the problem—one that would convert a State’s loss of notice into judicial oversight of federal workforce composition, something Article III does not permit.
The decision thus sets a clear precedent in the Fourth Circuit: when States sue the federal government over missed RIF notice, any viable case must be anchored to narrowly crafted relief that remedies the notice deprivation itself. Broader attempts to police federal employment law through State-led litigation will founder on standing and redressability.
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