Judge Dismisses Lawsuit Challenging Trump's USAID Overhaul
President Donald Trump achieved another significant legal victory this week after a federal judge dismissed a lawsuit intended to halt his administration’s restructuring of the U.S. Agency for International Development (USAID).
The ruling paves the way for the Trump administration to continue eliminating thousands of federal jobs, a decision conservative legal analysts suggest could positively impact similar legal challenges moving forward, according to a report from The Washington Examiner.
The lawsuit, filed in February by the American Foreign Service Association and the American Federation of Government Employees, claimed that the Trump administration breached federal employment protections by placing USAID employees on administrative leave with plans for eventual termination. They also alleged that personnel reductions could endanger employees stationed overseas.
Initially, U.S. District Judge Carl J. Nichols—appointed by President Trump—issued a temporary restraining order on safety grounds. He briefly extended that halt on February 13 but rescinded it shortly afterward.
In his latest decision, Nichols clarified that the court’s responsibility was restricted to evaluating employment claims rather than constitutional arguments concerning the agency’s structural changes. With the restraining order lifted, President Trump’s administration proceeded.
Approximately 2,000 USAID employees were placed on leave, retaining only about 600 essential personnel. Employees overseas were offered the option to return to the U.S. within 30 days, with full travel expenses covered by the government.
The dismissal of this lawsuit allows President Trump’s restructuring efforts to continue. Legal experts emphasize the ruling’s potential implications, particularly upon appeal, as a decision from the circuit court could set a binding precedent for district courts in Washington, D.C.
Nevertheless, the legal battle continues, as other lawsuits addressing the constitutional authority and funding implications tied to the agency’s restructuring remain active. These ongoing cases will ultimately determine the scope of presidential power to reorganize or dismantle congressionally established agencies and clarify the legal remedies available to affected employees.
In recent weeks, former Presidents George W. Bush and Barack Obama, along with U2 frontman Bono, publicly criticized President Trump’s actions in dissolving USAID following a federal investigation uncovering widespread fraud and mismanagement within the agency.
"Gutting USAID is a travesty, and it’s a tragedy," Obama stated in a video message to former agency employees, reported by The New York Post. "Because it’s some of the most important work happening anywhere in the world." He described Trump’s decision as "a colossal mistake," adding, "Sooner or later, leaders on both sides of the aisle will realize how much you are needed."
Bush, who typically refrains from direct criticism of President Trump, highlighted the closure as an end to a significant part of his legacy—the HIV/AIDS relief program credited with saving 25 million lives globally.
"You’ve showed the great strength of America through your work—and that is your good heart," Bush said. "Is it in our national interests that 25 million people who would have died now live? I think it is, and so do you."
Bono contributed emotionally during a virtual meeting with USAID staff, expressing deep concern about the consequences of the agency's closure. "They called you crooks. When you were the best of us," Bono declared in a poem he wrote for the occasion.
USAID, established under President Kennedy to administer foreign aid, became one of the first entities targeted by the Department of Government Efficiency (DOGE), a Trump initiative led by Elon Musk to eliminate government waste. Musk famously characterized USAID as "a viper’s nest of radical-left Marxists who hate America."
USAID’s functions were officially integrated into the State Department earlier this week.