Court Upholds Order to Reinstate Federal Workers Amid HUD Backpay Controversy

A U.S. District Judge temporarily ruled that the Labor Department must allow grant recipients to continue their diversity, equity, and inclusion (DEI) programs, while considering a longer-term injunction against the Trump administration's prohibition on 'equity-related grants.' This decision, viewed as a partial win for Chicago Women in Trades (CWIT), highlighted concerns over free speech rights and self-censorship among grant recipients. Meanwhile, a federal appeals court upheld an order requiring the Trump administration to rehire over 16,000 federal workers who were dismissed in mass firings, labeling the firings as illegal. The Housing and Urban Development Department (HUD) has come under scrutiny for not providing back pay to reinstated probationary employees, contrasting with other agencies that are complying with federal law requiring back pay for wrongful dismissals. Employees at HUD expressed frustration over the lack of retroactive pay during their reinstatement process, which has left many without income or benefits. As federal agencies navigate legal challenges related to workforce reductions, the complexities of reinstatement and compensation continue to unfold.