NORTHERN CALIFORNIA — The ruling centers on thousands of temporary FEMA reservists called upon to help communities after hurricanes, wildfires, floods, and other disasters. Labor groups sued to block the administration’s decision to stop renewing many contracts for these workers.

The lawsuit was filed by the American Federation of Government Employees and other labor groups. They argued that Department of Homeland Security plans violated congressional protections designed to safeguard the independence of FEMA.

Top Homeland Security officials directed FEMA leadership to submit a staffing plan that included a 50% staffing cut despite objections from the agency's supervisors. FEMA projected a workforce of 11,383 employees for the coming fiscal year, which is about half of its previous level.

Judge Illston wrote, "Frankly, the FEMA staffing plan number appears as if pulled from thin air." She found that the government violated rules established after Hurricane Katrina in 2005 that placed decisions on staffing levels in the hands of FEMA rather than the Department of Homeland Security. Post-Katrina rules prevent the Department of Homeland Security from substantially reducing the functions of FEMA. The Cadre of On-Call Response and Recovery teams, known as CORE, make up about 40% of FEMA’s workforce.

Illston wrote, "There is no evidence in the record reflecting reasoned decision for this about-face or for the subsequent conditions DHS placed on FEMA’s renewal authority." The 50% staffing cuts were not carried out. FEMA has rehired some staffers who were previously let go following recent leadership changes at FEMA and the Department of Homeland Security. A FEMA spokesperson said in a statement the agency "continues to maintain a roster of experienced leadership and support staff across headquarters and regional offices." A FEMA spokesperson said, "We’re ensuring workforce stability and a strong, deployable force for upcoming national events and potential disasters; making the agency leaner, faster and laser-focused on supporting state, local, tribal and territorial partners before, during and after disasters." Judge Illston noted that relief sought by unions would be too broad because FEMA is no longer systemically not renewing CORE contracts.

Judge Illston stated in a separate filing that the use of Signal by former acting FEMA head Karen Evans and former DHS deputy chief of staff Joseph Guy violated federal law and department policy. Karen Evans created a Signal chat with text messages set to auto-delete after four weeks that would appear to be highly relevant to the case. In March 2026, Karen Evans shortened the auto-delete timer on her Signal messages after being named a defendant in the lawsuit. Karen Evans created a backup of her Signal messages in April 2026, by which point the most timely messages had been deleted.

A Trump-appointed FEMA Review Council submitted a final report in May recommending changes to how the agency supports states, tribes, and territories in disasters. The final FEMA Review Council report recommended the agency conduct a strategic review to determine appropriate staffing levels, backing away from a December 2025 draft recommendation to cut the workforce by 50%. The Government Accountability Office reported in August that staff departures in 2025 resulted in a loss of institutional knowledge and experienced personnel.

More than 4,300 employees, representing about 17% of FEMA’s workforce, separated from the agency in the 2025 budget year. Over 1,500 FEMA employees separated through voluntary reductions in the 2025 budget year. FEMA made approximately 2,900 new hires in the 2025 budget year.

The Government Accountability Office recommended that Congress consider requiring FEMA to base workforce decisions on a more strategic planning process. A 2023 Government Accountability Office report found that FEMA was facing a staffing shortfall of more than 6,000 employees.

Why It Matters

The ruling addresses the structural independence of FEMA within the Department of Homeland Security, a framework established by post-Katrina reforms. By finding that DHS exceeded its authority to dictate staffing levels and contract renewals, the court reinforced statutory protections intended to keep disaster response decisions within the agency itself.

The case also shows ongoing tensions regarding workforce stability and transparency in federal emergency management. With thousands of employees having separated from the agency in recent years and questions raised about the destruction of evidence via private messaging apps, the decision reflects the legal boundaries governing administrative control over critical response capabilities.

Timeline

On September 28, 2009, the case Center for Biological Diversity v. U.S. Bureau of Land Management proceeded in the District Court for the Northern District of California. A 2023 Government Accountability Office report found that FEMA was facing a staffing shortfall of more than 6,000 employees as of December 31, 2023.

During the 2025 budget year ending September 30, 2025, more than 4,300 employees, representing about 17% of FEMA’s workforce, separated from the agency. Over 1,500 FEMA employees separated through voluntary reductions in the 2025 budget year, while FEMA made approximately 2,900 new hires in the same period.

Also in 2025, the Department of Homeland Security limited FEMA to renewing CORE contracts to 180 days at a time while considering a long-term plan to shrink the agency. In January 2026, the Department of Homeland Security instructed FEMA to let some CORE contracts lapse to force employees out as their terms expired.

What's New

Judge Illston noted that the Department of Homeland Security was exempt from President Trump’s January 2025 hiring freeze but interpreted new hires under the freeze to include FEMA CORE renewals. She stated the Department of Homeland Security acted arbitrarily and capriciously when it revoked FEMA’s authority to renew contracts for on-call disaster response teams.

Judge Illston stated that the Department of Homeland Security exceeded its authority when it ordered personnel changes that stripped FEMA of control over its own workforce. She wrote, "There is no evidence in the record reflecting reasoned decision for this about-face or for the subsequent conditions DHS placed on FEMA’s renewal authority." She wrote that the court will presume that lost Signal messages would have been unfavorable to defendants because they would have been further evidence of defendants’ plan, DHS’s control, and defendants’ implementing actions. She said the Department of Homeland Security continues to usurp FEMA’s authority by ordering the agency to offer contracts of up to 180 days. She wrote, "Evans should have known better."

How Sources Differ

Judge Susan Illston ruled that the Trump administration's plan to cut Federal Emergency Management Agency staffing by 50% was unlawful, while also writing that the FEMA staffing plan number appears as if pulled from thin air. The opinion further states the court will presume that lost Signal messages would have been unfavorable to defendants because they would have been further evidence of defendants’ plan, DHS’s control, and defendants’ implementing actions.

Judge Susan Illston wrote that the FEMA staffing plan number appears as if pulled from thin air, while also stating that the Department of Homeland Security continues to usurp FEMA’s authority by ordering the agency to offer contracts of up to 180 days. The Department of Homeland Security exceeded its authority when it ordered personnel changes that stripped FEMA of control over its own workforce, while simultaneously limiting FEMA to renewing CORE contracts to 180 days at a time while considering a long-term plan to shrink the agency.

Top Homeland Security officials directed FEMA leadership to submit a staffing plan that included a 50% staffing cut despite objections from the agency's supervisors, while the Department of Homeland Security limited FEMA to renewing CORE contracts to 180 days at a time while considering a long-term plan to shrink the agency. Judge Susan Illston said the Department of Homeland Security continues to usurp FEMA’s authority by ordering the agency to offer contracts of up to 180 days, while labor groups argued that Department of Homeland Security plans violated congressional protections designed to safeguard the independence of FEMA.

Judge Susan Illston said the Department of Homeland Security continues to usurp FEMA’s authority by ordering the agency to offer contracts of up to 180 days, while post-Katrina rules prevent the Department of Homeland Security from substantially reducing the functions of FEMA. Finally, Judge Susan Illston said the Department of Homeland Security continues to usurp FEMA’s authority by ordering the agency to offer contracts of up to 180 days, while FEMA has rehired some staffers who were previously let go following recent leadership changes at FEMA and the Department of Homeland Security.