A federal judge on Friday issued a significant setback to former President Donald Trump and his ally Elon Musk in their efforts to dismantle the United States Agency for International Development (USAID). The judge temporarily halted plans to remove thousands of agency staff from their positions and to enforce abrupt administrative leave policies.
US District Judge Carl Nichols, himself a Trump appointee, ruled to block an order requiring thousands of USAID employees stationed overseas to relocate their families and households back to the United States within 30 days at the government’s expense. The judge argued that such measures would have subjected workers, as well as their spouses and children, to unnecessary risks and financial burdens.
The ruling followed numerous reports from USAID employees who described the chaos caused by the Trump administration’s rush to shut down the agency and its international programs. Many workers abroad were cut off from essential government communication systems, including email, which they relied on for health and safety emergencies.
The Associated Press reported that USAID contractors in regions like the Middle East had their “panic button” apps—designed for emergencies—disabled or wiped from their phones when the administration abruptly placed them on furlough.
Judge Nichols highlighted these concerns in his ruling, noting, “Administrative leave in Syria is not the same as administrative leave in Bethesda.” He also pointed to the personal hardships faced by many employees, such as being uprooted after decades abroad, removing children with special needs from school midyear, and other logistical challenges.
While the judge granted relief by pausing the 30-day relocation deadline and protecting 2,200 workers from being placed on administrative leave, he declined a request from federal employee associations to temporarily block the administration’s freeze on USAID funding. The funding freeze has effectively shut down the six-decade-old agency and its programs.
Judge Nichols emphasized that the temporary order did not constitute a final decision on the broader lawsuit brought by the employees challenging the administration’s actions.
The Trump administration, with Musk leading the Department of Government Efficiency, has made USAID a primary target in its broader effort to downsize the federal government. The administration has shut down most of the agency’s funding, halted aid and development programs globally, and placed staff and contractors on leave. Workers have reportedly been locked out of email systems, and computer servers have been removed from USAID headquarters, according to Democratic lawmakers.
In a symbolic move, workers on a crane were seen scrubbing the USAID name from the stone front of its Washington, D.C., headquarters. Signs bearing the agency’s name were covered with duct tape, flags were taken down, and flowers were left outside the building’s entrance.
The lawsuit, brought by the American Foreign Service Association and the American Federation of Government Employees, argues that the president lacks the authority to dismantle USAID without congressional approval. Democratic lawmakers have echoed this position.
“This is a full-scale gutting of virtually all personnel of an entire agency,” said Karla Gilbride, the attorney representing the employee associations.
Justice Department attorney Brett Shumate countered, claiming the administration had the legal authority to place agency staff on leave, stating, “The government does this across the board every day. That’s what’s happening here—it’s just on a larger scale.”
The dismantling of USAID has raised alarm about the impact on essential life-saving programs abroad. Earlier on Friday, several USAID officials disputed claims by Secretary of State Marco Rubio that critical programs were still receiving funding. They stated that no such waivers had been granted, leaving millions at risk.
Among the affected programs are $450 million in food aid, sufficient to feed 36 million people, which has been halted, and water supplies for 1.6 million displaced people in Sudan’s Darfur region. The cuts have left desert water pumps without fuel, endangering lives.
While the judge’s order temporarily shields thousands of workers, the fate of many others remains unclear. Numerous employees and contractors have already been laid off, furloughed, or placed on leave.
The court’s ruling marks another judicial setback for the Trump administration, which has faced legal challenges over several controversial policies, including offering financial incentives for federal employees to resign and attempting to end birthright citizenship for children born to undocumented immigrants.
As hearings continue, the outcome of the lawsuit could determine the future of USAID and its mission to provide international aid and development support.
