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A federal judge on Friday temporarily halted the Trump administration’s plan to place thousands of employees at the U.S. Agency for International Development (USAID) on administrative leave.
The decision marks the latest development in President Donald Trump’s efforts to shut down the independent agency, which he and his allies claim is plagued by corruption and inefficiency.
The ruling came just hours before 2,200 USAID employees were set to be placed on leave at 11:59 p.m. ET Friday night. The move was a key part of Trump’s broader initiative to restructure the federal government, an effort that has been led by Elon Musk through the White House’s Department of Government Efficiency (DOGE).
An additional 500 USAID employees have already been placed on leave, according to a Justice Department lawyer who disclosed the figure during court proceedings.
Judge Carl Nichols, a Trump appointee, issued the ruling after hearing arguments in a U.S. District Court case in Washington, D.C. The lawsuit was brought by two organizations representing federal workers—the American Foreign Service Association and the American Federation of Government Employees.
The groups had urged the court to intervene, arguing that the administration’s actions amounted to an unconstitutional and illegal dismantling of USAID.
“USAID is suffering an onslaught of unconstitutional and illegal attacks, leaving its workers, contractors, grantees, and beneficiaries deserted in the wreckage and a global humanitarian crisis in the wake,” they wrote in a court filing earlier Friday.
They further accused the Trump administration of “deliberately dismantling USAID’s infrastructure” and claimed that the agency was “poised for a near-final killing blow.”
In response, Nichols ruled that a “very limited” temporary restraining order would go into effect before midnight, specifically blocking the leave orders for the 2,200 USAID employees who were scheduled to be impacted.
However, he did not immediately rule on whether his decision would apply to the 500 employees who had already been placed on leave.
During the hearing, Nichols pressed Justice Department attorney Brett Shumate to explain why the administration was rushing to remove such a large number of USAID employees.
“What is the urgency of this?” the judge asked.
Shumate defended the move, arguing that “the President has decided there is corruption and fraud at USAID.”
USAID, established in 1961 by President John F. Kennedy, administers foreign aid and conducts humanitarian missions around the world.
Although foreign aid comprises only about 1% of the federal budget and less than 0.33% of GDP, according to a September report from the Brookings Institution, USAID has long been a target of conservative critics.
Trump and Musk have been among the agency’s most vocal opponents, accusing it of being a bureaucratic stronghold for wasteful spending and corruption.
“The corruption is at levels rarely seen before. CLOSE IT DOWN!” Trump wrote on Truth Social on Friday morning, reiterating his call to dismantle USAID.
Musk, who has played a central role in leading Trump’s government overhaul, also took credit for the agency’s disruption.
“We spent the weekend feeding USAID into the wood chipper,” Musk wrote on his social media platform X.
Musk’s Department of Government Efficiency has been instrumental in implementing Trump’s agenda to shrink the federal workforce and cut spending.
DOGE’s influence has sparked both praise and criticism, with supporters arguing that the federal government needs drastic reforms, while opponents warn that the moves could destabilize essential services.
The push to dismantle USAID has drawn backlash from humanitarian groups, international allies, and government employees who argue that the agency plays a crucial role in delivering aid to vulnerable populations worldwide.
Critics of Trump’s plan warn that a sudden shutdown could have dire consequences, particularly in regions experiencing conflict, famine, and health crises.
While Nichols’ ruling provides temporary relief for the 2,200 employees who were set to be placed on leave, the case remains ongoing, and further legal battles are expected.
The administration has not indicated whether it will appeal the ruling, but Trump has made it clear that he intends to press forward with his efforts to restructure the federal government.
For now, the court’s intervention has paused one of the administration’s most aggressive steps toward dismantling USAID. However, with Trump and Musk doubling down on their agenda, the fight over the agency’s future is far from over.
