A federal judge in Rhode Island denied the U.S. government’s request to dismiss a lawsuit regarding its termination of thousands of HHS employees in spring 2025, according to an April 7 decision.
The lawsuit, filed by 19 states and the District of Columbia in May 2025, seeks to invalidate the HHS’ decision to overhaul its structure and operations. HHS said its restructuring included terminations of 10,000 full-time employees. However, the restructuring was marked by a jumble of reversals and attendant litigation.
In an April 7 order, U.S. District Judge Melissa DuBose denied the motion for dismissal requested by federal government defendants, which included several U.S. health agency leaders.
Here are five things to know about the lawsuit:
1. The lawsuit centers on a March 27, 2025, directive from HHS Secretary Robert F. Kennedy Jr. to institute a “Transformation to Make America Healthy Again.” The directive coincided with 10,000 reduction in force notices. The lawsuit alleges the restructuring violated the Administrative Procedure Act and the Constitution, claiming HHS does not have the authority to restructure itself and fire its employees.
2. The states that filed the lawsuit are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, New Jersey, New Mexico, Oregon, New York, Rhode Island, Vermont, Washington and Wisconsin. The District of Columbia is also a plaintiff.
3. Defendants include Mr. Kennedy, then-acting director of the CDC, Susan Monarez, PhD, FDA Commissioner Martin Makary, MD, and leaders of various HHS divisions.
4. The plaintiffs were granted a preliminary injunction, in part, “to prevent HHS from razing itself,” according to Ms. DuBose’s order. The defendants sought an emergency stay on the preliminary injunction, but after the Court of Appeals denied the request in September, they sought to dismiss the lawsuit.
5. Ms. DuBose allowed the lawsuit to proceed, saying the plaintiffs showcased “sufficient, plausible allegations” that the HHS’ actions “constituted arbitrary and capricious agency action.”
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.