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Trump drops executive order stripping a law firm of its government contracts after he says it pledged $40 million in pro bono legal services to his administration’s causes

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Fired by Elon Musk’s DOGE, then reinstated by a judge, thousands of federal workers are living in limbo

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The IRS employee was a nervous wreck. 

He had been worried for weeks that his job would be cut as part of the next round of President Donald Trump and Elon Musk’s cuts to the federal workforce. The worker, who prefers to remain anonymous for fear of retribution, was constantly searching for updates on a Reddit forum for federal workers, and glued to a group chat with his coworkers. 

“I was just kind of a mess because I knew it was pretty much over,” he says. 

That’s why when the ax finally fell, and his manager called to let him know he had been cut, it felt almost like a relief. He was fired along with thousands of other probationary workers in what was dubbed the “Valentine’s Day Massacre.” 

“There was a period of expectation that this was going to happen— I was more or less just waiting for it. When I got the call, I was not surprised,” he says.  

Large swaths of the government workforce have been laid off over the past two months through a variety of unprecedented means, including a return-to-office mandate and a mass resignation offer. But some groups were singled out for termination, including probationary employees. These workers—defined as recent hires or long-serving staffers who recently switched positions—were cut en masse in February when the Trump administration ordered federal agencies to fire nearly all of them. Around 220,000 federal employees in total had less than a year of service completed as of March 2024, according to government data. 

Last week, two separate court rulings ordered the Trump administration to reinstate these fired probationary employees. But rather than a happy ending and a triumphant return to the office, many of these workers are grappling with new obstacles preventing their return, the emotional upheaval that comes with living in uncertainty, and big questions about what happens next. 

“It’s beyond demoralizing to be stuck in this depressing and inefficient limbo—fired one moment, then supposedly rehired with no clarity about pay or benefits,” one Housing and Urban Development employee, who prefers not to be named for fear of retaliation, tells Fortune. “I don’t even know if I should look for another job or prepare to show up at HUD tomorrow.” 

Famously fired 

The firing of probationary workers was instantly met with legal challenges. But employees who lived through it had to contend with the day-to-day reality of lost paychecks, healthcare benefits, and dramatically altered lives. 

Fired without severance, the IRS employee quickly filed for unemployment, but his claim was not immediately approved. He says he “has the means to weather the storm,” but has spent the last few weeks looking for new jobs without much luck. 

The HUD employee’s termination, on the other hand, immediately triggered financial uncertainty, and her retired parents have stepped up to help pay bills. As someone with chronic illness, the loss of health insurance in particular triggered immense anxiety. 

“It’s been one of the worst points of my life, in my marriage, [as] a mom, as a daughter,” she says. She adds that there were at least three days when she “just stayed in bed after my kids went to school and cried.”

The new purgatory

Last week, terminated probationary employees caught a break. 

On March 14, U.S. District Judge William Alsup ordered six federal agencies, including the Department of Treasury, to reinstate thousands of employees who were cut under the guidance of the Office of Personnel management, a move he declared illegal. A different federal judge in Maryland ruled in favor of 20 Democrat attorneys general calling for the reinstatement of fired probationary federal workers from 18 federal agencies. The Trump administration has filed appeals in both cases. 

The court’s decision to reinstate probationary employees has been the only light in a dark few weeks for the HUD employee. “My parents were so happy—my dad started crying,” she says. 

But while last week’s court rulings were technically a victory for probationary workers, it’s not quite as simple as a triumphant Monday morning return to the office. The court rulings take issue with the way that these workers were fired, not a federal agency’s right to fire them in general, and many are likely still headed for termination. 

While some workers have returned to their old roles, others were reinstated only to be immediately put on administrative leave, according to emails sent by the OPM and viewed by Fortune. These workers were told they “should not report to duty or perform any work until receiving further guidance.” As of writing, both the HUD and IRS employees have received no additional communication regarding a timeline on when, or even if, they will return to work. 

It’s unclear how long this administrative leave will last, and each agency is acting in different ways. As of March 17, HUD had fully reinstated only 13 employees, while 299 were placed on administrative leave, according to statements submitted to the court by government agency leaders. The chief human capital officer at HUD, Lori Michalski, wrote that immediately reinstating those employees would “impose substantial burdens on HUD, cause significant confusion, and cause turmoil for the terminated employees.” 

The IRS wrote in the same filing that it was working to reinstate 7,613 employees affected by the probationary worker terminations. However, the agency also noted that if an appellate ruling reverses the decision to bring back these workers, they “could be subjected to multiple changes in their employment status in a number of weeks.”

Currently, the day-to-day lives of both the IRS and HUD employees don’t look very different compared to before they were waiting to find out if they would be reinstated. They expect their previous paychecks to go through during the next pay cycle, but the HUD worker still has not had her health insurance reinstated. 

While the IRS worker said he would be happy to be reinstated, and would gladly go back to the IRS if and when they allow him to do so. But he acknowledges that “it’s certainly not an avenue that I can rely on over the long term.” 

The HUD employee says she’s applied for 168 jobs, and has had one informational interview. She thought she had chosen a stable career when she left the private sector to work for the government, but now says she has to think of her family’s future. 

“I don’t want to count on this federal job. I don’t know if it will last.” 

This story was originally featured on Fortune.com



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Trump hints at ‘flexibility’ on reciprocal tariffs while balking at more ‘exceptions’

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  • President Donald Trump suggested he would be open to tariff “flexibility,” but doesn’t seem too keen on granting more exceptions to specific industries. Trump’s comments helped Wall Street rebound to finish with narrow gains after indexes initially sold off Friday morning.

President Donald Trump resisted the idea of granting more tariff relief but appeared open to  reciprocal tariff “flexibility.”

At the Oval Office on Friday, Trump was asked about granting industries exemptions to his tariffs.

“People are coming to me and talking about tariffs, and a lot of people are asking me if they could have exceptions,” he replied. “And once you do that for one, you have to do that for all.”

During the first couple months in office, Trump has most notably implemented a 20% tariff on Chinese goods as well as on-again, off-again 25% duties on goods from Canada and Mexico but granted the auto industry a one-month exemption on vehicles that comply with the US-Mexico-Canada trade deal. 

Additionally, Trump has levied a 25% tariff on all steel and aluminum while threatening duties on microchips, and pharma imports into the U.S. He also threatened to impose a 25% duty on all goods imported from the European Union.

“I gave the American car companies a break because it would have been unfair if I didn’t,” Trump said, adding that he didn’t change his mind on tariffs.

The tariff on the auto industry will go back into effect early next month.

“I don’t change. But the word flexibility is an important word,” Trump said. “Sometimes it’s flexibility. So there’ll be flexibility, but basically it’s reciprocal.”

The White House did not immediately respond to Fortune’s request for elaboration on Trump’s use of the word “flexibility.”

Trump affirmed the self-proclaimed “liberation day” on April 2, when he will impose reciprocal tariffs on countries that have assigned tariffs on U.S. goods as well as value-added taxes and other non-tariff trade barriers. 

While market volatility over tariff concerns has ravaged Wall Street in recent weeks, stocks rallied after Trump’s comments, bouncing back from a morning selloff. After falling as much as 1.6% Friday, the S&P 500 finished 0.08% higher on the day, while the Dow Jones Industrial Average and the Nasdaq Composite gained 0.08% and 0.52%, respectively.

Additionally, Trump announced Friday he plans to speak with Chinese President Xi Jinping, but has not indicated when. 

China has levied retaliatory tariffs on U.S. agriculture imports in response to the 20% all-encompassing tariff Trump placed on the country. 

“I’ll be speaking to President Xi, have a great relationship with him. We’re going to have a very good relationship, but we have a trillion-dollar deficit,” Trump said.

This story was originally featured on Fortune.com



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A man filed a complaint against OpenAI saying ChatGPT falsely accused him of killing his children

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  • Arve Hjalmar Holmen, a citizen of Norway, said he asked ChatGPT to tell him what it knows about him, and its response was a horrifying hallucination that claimed he’d murdered his children and gone to jail for the violent act. Given how the AI mixed its false response with real details about his personal life, Holmen filed an official complaint against ChatGPT maker OpenAI.

Have you ever Googled yourself just to see what the internet has to say about you? Well, one man had that same idea with ChatGPT, and now he’s filed a complaint against OpenAI based off what its AI said about him.

Arve Hjalmar Holmen, from Trondheim, Norway, said he asked ChatGPT the question, “Who is Arve Hjalmar Holmen?”, and the response—which we won’t print in full—said he was convicted of murdering his two sons, aged 7 and 10, and sentenced to 21 years in prison as a result. It also said Holmen attempted murder of his third son.

None of these things actually happened, though. ChatGPT appeared to spit out a completely false story it believed was completely true, which is called an AI “hallucination.” 

Based on its response, Holmen filed a complaint against OpenAI with the help of Noyb, a European center for digital rights, which accuses the AI giant of violating the principle of accuracy that’s set forth in the EU’s General Data Protection Regulation (GDPR).

“The complainant was deeply troubled by these outputs, which could have harmful effect in his private life, if they were reproduced or somehow leaked in his community or in his home town,” the complaint said.

What’s dangerous about ChatGPT’s response, according to the complaint, is it blends real elements of Holmen’s personal life with total fabrications. ChatGPT got Holmen’s home town correct, and it was also correct about the number of children—specifically, sons—he has.

JD Harriman, partner at Foundation Law Group LLP in Burbank, Calif., told Fortune that Holmen might have a difficult time proving defamation.

“If I am defending the AI, the first question is ‘should people believe that a statement made by AI is a fact?'” Harriman asked. “There are numerous examples of AI lying.”

Furthermore, the AI didn’t publish or communicate its results to a third party. “If the man forwarded the false AI message to others, then he becomes the publisher and he would have to sue himself,” Harriman said.

Holmen would probably also have a hard time proving the negligence aspect of defamation, since “AI may not qualify as an actor that could commit negligence” compared to people or corporations, Harriman said. Holmen would also have to prove that some harm was caused, like he lost income or business, or experienced pain and suffering. 

Avrohom Gefen, partner at Vishnick McGovern Milizio LLP in New York, told Fortune that defamation cases surrounding AI hallucinations are “untested” in the U.S., but mentioned a pending case in Georgia where a radio host filed a defamation lawsuit that survived OpenAI’s motion to dismiss, so “we may soon get some indication as to how a court will treat these claims.” 

The official complaint asks OpenAI to “delete the defamatory output on the complainant,” tweak its model so it produces accurate results about Holmen, and be fined for its alleged violation of GDPR rules, which compel OpenAI to take “every reasonable” step to ensure personal data is “erased or rectified without delay.”

“With all lawsuits, nothing is automatic or easy,” Harriman told Fortune. “As Ambrose Bierce has said, you go into litigation as a pig and come out as a sausage.”

OpenAI did not immediately respond to Fortune‘s request for comment.

This story was originally featured on Fortune.com



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