A federal judge has lifted legal barriers to the Trump administration’s plan to restructure the U.S. Agency for International Development (USAID), clearing the way for thousands of foreign aid workers to be placed on administrative leave. The ruling by Trump-appointed Judge Carl Nichols concluded unions failed to prove the personnel changes would cause irreparable harm, a key legal threshold for blocking government action.
In a 26-page decision, Nichols emphasized the administration’s authority to audit USAID operations, stating:
If the government deems it necessary to place workers on leave to review foreign assistance programs, that is their prerogative.
The court initially blocked the plan in February 2025 over safety concerns for overseas staff losing access to security systems. However, recent government filings convinced Nichols these risks were minimal, with the judge noting:
The prospect of physical harm to employees on administrative leave abroad is highly unlikely.
Key implications of the ruling include:
- Only 611 direct-hire USAID employees retain full status
- Accelerated review of $20B+ foreign aid programs
- Potential precedent for future federal workforce reforms
The decision follows contentious claims from Trump official Pete Morocco, who accused career USAID officers of undermining the administration’s pencils down approach to program audits. Critics argue the restructuring could destabilize critical aid operations in conflict zones, while supporters claim it prevents bureaucratic overreach.