U.S. President Donald Trump planned to place 2,200 employees of the United States Agency for International Development (USAID) on unpaid leave, a plan that was temporarily blocked by a judge hours before it was to take effect. Judge Carl Nichols stated that he would issue a "very limited" temporary restraining order in response to a lawsuit filed by a union challenging the plan to furlough thousands of employees starting Friday at midnight. This legal intervention introduces a temporary reprieve for affected USAID employees.
USAID is the U.S. government's primary overseas development agency, employing approximately 10,000 people, two-thirds of whom work abroad. The working status of the remaining employees is currently unclear. According to Trump's plan, approximately 611 employees would continue working at the agency. Meanwhile, officials are dismantling and covering up the USAID headquarters signs in Washington, D.C., signaling a significant shift in the agency's operations.
Trump has consistently argued that USAID is not a valuable use of taxpayer money. It is one of many federal agencies targeted by the Trump administration as part of a plan to cut federal spending. Republicans campaigned on reforming the government and established an advisory body called the "Department of Government Efficiency (Doge)," led by tech billionaire Elon Musk, with the aim of cutting budgets across various departments.
Judge Nichols' ruling was in response to an emergency petition filed by the American Foreign Service Association and the American Federation of Government Employees, two unions representing the agency's employees. Judge Nichols, nominated by Trump during his first term, stated that a written order would be issued later, providing more details. The organizations that filed the lawsuit told the BBC that they were awaiting the text of the court order to understand how all USAID employees would be affected, highlighting the uncertainty surrounding the situation.
Lawyer Lauren Baettman of the public advocacy group Public Citizen stated that, for now, it appears that the agency's more than 2,000 directly employed union members are safe. Approximately 500 USAID employees have already been placed on unpaid leave by the Trump administration. At the hearing, the judge seemed unlikely to grant other requests in the lawsuit, including restoring grants and contracts or reopening USAID buildings, suggesting a limited scope of intervention.
The legal lawsuit argues that the president's attempt to dismantle the agency violates the U.S. Constitution and federal law. "No action by Defendants to dismantle USAID has been authorized by Congress," the lawsuit states. "Under federal statute, Congress is the only entity that can lawfully dismantle the agency." Justice Department official Brett Shumate, representing the Trump administration, told the judge that the president "has determined that there is corruption and fraud at USAID," indicating the administration's justification for its actions.
Trump signed an executive order just hours after taking office on January 20, suspending all foreign aid until the funds were reviewed and aligned with his "America First" policy. This led to USAID issuing stop-work orders, which in turn disrupted the global aid system, with hundreds of projects frozen in countries around the world. Trump posted on his Truth Social platform on Friday: "USAID is driving the radical left crazy. Corruption is at a level never seen before. Shut it down!" This statement underscores his strong stance against the agency and its perceived inefficiencies.
The United States is by far the world's largest provider of humanitarian aid. It has bases in more than 60 countries and operates in dozens of others, much of which is done by its contractors. According to government data, the U.S. spent $68 billion (£55 billion) on international aid in 2023. This total is distributed across several departments and agencies, but USAID's budget accounts for more than half, at approximately $40 billion, which is about 0.6% of the U.S.'s total annual government expenditure of $6.75 trillion.
The head of the United Nations' HIV/AIDS program told the BBC that cutting funding would have terrible global consequences. Winnie Byanyima, Executive Director of UNAIDS, stated: "If funding is not restored, AIDS-related deaths will increase by 6.3 million in the next 5 years." Former heads of USAID have criticized the reported cuts. One of those heads, Gayle Smith, emphasized to the BBC that the U.S. has always been the first country to arrive during global humanitarian crises. "When you take all of that away, you send some very dangerous messages," Smith said. "The U.S. is signaling that, frankly, we don't care whether people live or die, and we are not a reliable partner," highlighting the potential long-term damage to international relations.