A U.S. judge has temporarily halted the Trump administration’s plans to lay off 2,200 employees from the U.S. Agency for International Development (USAID), as President Donald Trump moves to dismantle the agency amid allegations of corruption and fraud.
On Friday, U.S. District Judge Carl Nichols in Washington announced the decision during a hearing on a lawsuit filed by the largest U.S. government workers’ union and an association of foreign service workers. The groups are challenging the administration’s efforts to close USAID, which distributes billions of dollars in humanitarian aid worldwide.
Judge Nichols stated that a written ruling would be issued later in the day. While his order prevents the immediate placement of 2,200 USAID employees on administrative leave, it does not require the reopening of USAID buildings or the restoration of funding for grants and contracts.
Karla Gilbride, a lawyer representing the unions, argued that the administration’s actions exceeded its authority. “The major reduction in force, closure of offices, and forced relocation were all done in violation of the separation of powers,” she said during the hearing.
Brett Shumate, a Justice Department official, told the court that 500 employees had already been placed on leave, with plans for an additional 2,200. “The president has decided there is corruption and fraud at USAID,” Shumate stated.
President Trump, in a post on Truth Social on Friday, accused USAID of fraudulent spending and called for its closure. Shortly after his inauguration on January 20, he ordered a pause on all U.S. foreign aid to ensure it aligned with his “America First” policy.
The State Department issued worldwide stop-work directives following the executive order, effectively freezing all foreign aid except for emergency food assistance. This move halted USAID programs providing lifesaving aid globally, prompting warnings from experts that it could put lives at risk.
The dismantling of USAID has been overseen by businessman Elon Musk, a close Trump ally leading efforts to shrink federal agencies. Musk is spearheading the administration’s plans to reduce the federal bureaucracy.
In the 2023 fiscal year, the U.S. disbursed $72 billion in aid worldwide, partly through USAID. This funding supports initiatives ranging from women’s health in conflict zones to clean water access, HIV/AIDS treatment, energy security, and anti-corruption efforts.
The U.S. provided 42 percent of all humanitarian aid tracked by the United Nations in 2024, accounting for less than 1 percent of the federal budget. The suspension of aid could have significant repercussions for vulnerable populations around the world.
As the legal battle continues, the fate of USAID and the future of U.S. foreign aid remain uncertain. The judge’s temporary order offers a brief reprieve, but the long-term implications are yet to unfold.
