The White House had sought an emergency stay of an injunction issued by U.S. Judge Susan Illston of San Francisco in a lawsuit brought by labor unions and cities, including San Francisco and Chicago.

A split three-judge panel of the U.S. 9th Circuit Court of Appeals found that the staff cuts could have significant ripple effects and should stay on hold while a lawsuit plays out.

A federal appeals court on Friday rejected the Trump administration’s bid to pause a lower court ruling that blocked mass