A federal judge has ruled in favor of the Trump administration, allowing the termination of USAID contractors as part of a sweeping review of foreign aid programs, despite multiple legal challenges attempting to block the move.
Quick Takes
- The Personal Services Contractor Association’s lawsuit to prevent USAID contractor terminations was rejected by a federal judge.
- The Trump administration plans to cancel over 90% of USAID’s contracts and grants as part of a broader review of foreign aid alignment with U.S. interests.
- While this court ruling favors the administration, they’ve faced mixed results in various legal challenges to their federal workforce changes.
- Republicans view many USAID programs as wasteful, while Democrats argue the agency is crucial for national security.
- Around 1,600 U.S.-based USAID employees have been laid off amid this controversial restructuring.
Court Rejects Contractor Challenge to USAID Changes
A federal judge has sided with the Trump administration in a key decision allowing the government to proceed with terminating contractors working for the U.S. Agency for International Development (USAID). This ruling comes amid a broader administration initiative to drastically reduce USAID operations, with plans to cancel approximately 90% of the agency’s contracts and grants. The Personal Services Contractor Association (PSC) had filed suit against the administration, claiming it had overstepped its authority by freezing USAID’s funding without proper congressional consultation.
The court determined that the contractors failed to demonstrate they would suffer permanent damage from the administration’s actions. This legal victory for the Trump team follows an executive order that paused foreign aid for 90 days to conduct a comprehensive review of how these programs align with American interests. The administration has offered limited waivers for food and medicine programs, but communication breakdowns and staffing shortages have reportedly created significant disruptions for overseas contractors.
BOMBSHELL RULING! — OFFICIAL: Federal Judge Gives President Trump Power to Fire USAID Contractorshttps://t.co/ndKD8WzV0G
— Conservative Roof (@ConservRoof) March 6, 2025
Administration Cites Inefficiencies in USAID Operations
The government’s legal defense centered on Secretary of State Marco Rubio’s authority to review USAID’s funding priorities due to perceived operational problems. Rubio has described the agency as suffering from “severe inefficiency,” which the administration has used to justify its sweeping review. The PSC lawsuit represents just one of four legal challenges that have been filed against the Trump administration’s actions regarding USAID, highlighting the contentious nature of these changes.
The PSC has argued that the administration’s actions have created “havoc” within the agency and for its contractors, particularly those serving overseas. Most USAID staff have been placed on administrative leave, and approximately 1,600 U.S.-based employees have been laid off as part of this restructuring. Concerns have also emerged about USAID potentially losing its independence through a possible merger with the State Department, which would fundamentally alter the agency’s operations and governance structure.
Mixed Results in Court Battles Over Administration Actions
While the administration secured this victory regarding USAID contractors, it has faced a mixed record in the courts on other workforce initiatives. A federal judge blocked the administration from firing National Labor Relations Board member Gwynne Wilcox, citing a violation of federal law. The administration has been hit with numerous lawsuits, primarily filed by Democratic attorneys general, federal workers, and labor unions, challenging various executive actions. In many of these cases, temporary rulings have gone against the administration.
These legal battles reflect a deep political divide over USAID’s role and governance. Republicans have long criticized many USAID programs as wasteful expenditures that don’t sufficiently benefit American interests. In contrast, Democrats generally view the agency as a crucial component of national security and international diplomacy. Several additional cases are pending across federal courts, with some expected to eventually reach the Supreme Court given the significant stakes involved for government operations and foreign policy.
Sources:
Federal Judge Allows Trump Administration To Fire USAID Contractors
