A federal judge allowed President Donald Trump’s administration to move forward with restructuring the United States Agency for International Development, marking a key early test of his authority to reduce parts of the federal government.
United States District Judge Carl Nichols, who was appointed by President Donald Trump, rejected a request from unions representing USAID employees to indefinitely block the administration’s plan to dismantle the agency.
In newly filed court documents, Nichols threw out the temporary restraining order that paused Trump’s order that 2,200 USAID employees be put on administrative leave, as the opinion concludes that there is not enough evidence that the agency is being disbanded to justify an extension.
The ruling means the White House can press ahead with restructuring the nation’s main foreign development agency, even as lawmakers and union leaders express concerns over stalled or canceled programs. At the same time, supporters argue this approach is necessary to curb excess government spending.
Attorneys representing unions for USAID employees argued that key programs have been halted and numerous employees placed on administrative leave, contending that such moves undermine the agency’s day-to-day foreign development functions.
Judge Nichols, however, determined that the unions had not met the standard for proving irreparable harm sufficient to block the administration’s plans. “At present, the agency is still standing,” he wrote.
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The court’s memorandum also indicated that claims regarding changed work conditions must be addressed through agency-specific grievance procedures rather than through broad lawsuits in federal court.
Meanwhile, administration representatives have defended the course of action as a thorough review of current programming and expenditures. Internal memoranda described intentions to suspend or modify activities that the White House believes do not align with broader strategic goals. Executive branch officials insisted that employees affected by administrative leave are still receiving compensation and vital logistical support, especially those based overseas who opt to remain in foreign posts.
The unions are expected to appeal the decision, prolonging the dispute over whether the White House exceeded its authority in curbing the agency’s operations.
In the meantime, USAID’s leadership has indicated it will continue to implement the restructuring effort in phases, aiming to complete evaluations of major assistance programs before deciding which ones may be reinstated, revised, or ended altogether.