Federal judge halts Trump-Musk plan to dismantle USAID, reinstates furloughed staff

Hind Al Soulia - Riyadh - WASHINGTON — A federal judge on Friday issued a temporary injunction against the Trump administration’s efforts to dismantle the U.S. Agency for International Development (USAID), halting plans to furlough thousands of agency employees and forcing overseas staff to return to the U.S. within 30 days.

U.S. District Judge Carl Nichols, a Trump appointee, ruled that the sudden move posed unnecessary risks and financial burdens on USAID employees and their families. His order also reinstated staff who had already been placed on administrative leave.

The decision marks the first significant legal setback for President Donald Trump and his billionaire ally, Elon Musk, who spearheaded the effort to shut down USAID under the newly created Department of Government Efficiency.

Nichols cited reports that some USAID personnel working abroad had been abruptly cut off from government communication systems, leaving them vulnerable in case of emergencies.

The Associated Press previously reported that USAID contractors in the Middle East lost access to essential security features, including emergency “panic button” apps, after being suddenly furloughed.

In his order, Nichols emphasized the hardships faced by overseas employees, noting that administrative leave in Syria is not the same as administrative leave in Bethesda.

He also highlighted the severe disruptions for staff who had spent decades abroad, lacked housing in the U.S., and faced pulling their children out of school midyear. However, he declined to block a Trump administration funding freeze that has effectively shut down USAID’s operations, pending further hearings.

Trump, who has called for USAID to be dismantled, reiterated his stance before the ruling, posting on social media: “CLOSE IT DOWN.”

The administration, with Musk overseeing cost-cutting measures, has already moved aggressively to erase USAID’s presence. Workers removed the agency’s signage from its Washington headquarters, covered its name with duct tape, and took down USAID flags.

The American Foreign Service Association and the American Federation of Government Employees have filed a lawsuit, arguing that Trump lacks the authority to dissolve the agency without congressional approval. Democratic lawmakers have echoed that stance, condemning the move as an overreach of executive power.

The Trump administration’s abrupt shutdown of USAID has already led to major disruptions in global aid efforts.

A group of USAID officials told reporters that contrary to claims from Secretary of State Marco Rubio, critical humanitarian programs had not received waivers to continue funding.

Among the stalled initiatives were $450 million worth of food aid from U.S. farmers intended to feed 36 million people, and water supplies for 1.6 million displaced individuals in Sudan’s Darfur region, which were cut off due to a lack of fuel funding for water pumps.

Rubio defended the administration’s actions, claiming the shutdown was necessary to prevent USAID staff from sneaking through payments in defiance of a funding freeze. Agency officials have denied any obstruction.

The Trump administration had ordered nearly all USAID employees overseas to return to the U.S. at government expense within 30 days, prompting pushback from embassy officials and humanitarian organizations.

The judge’s ruling delays that deadline but does not yet reverse the broader dismantling of the agency. A separate legal challenge is also underway against the administration’s financial incentives for federal workers to resign, with a hearing scheduled for Monday. — Agencies