U.S. District Judge Carl Nichols, who was nominated by Trump during his first term, announced he would enter a “limited” order that temporarily prevents the administration from:

1. Placing 2,200 USAID (The United States Agency for International Development) employees on administrative leave
2. Relocating certain humanitarian workers stationed outside the United States

The judge’s decision came in response to a lawsuit filed by the largest U.S. government workers’ union and an association of foreign service workers. This temporary restraining order pauses some of the administration’s efforts to drastically scale back USAID’s operations, which began shortly after Trump’s inauguration on January 20.

While this order provides temporary relief, it does not completely halt all actions taken to reduce USAID’s workforce and operations. The agency has already experienced significant changes, including:

• Closure of offices and removal of USAID signage from its Washington headquarters
• Layoffs of numerous contractors
• Cessation of funding for many aid programs

USAID employees were put on paid administrative leave “until further notice” on Monday following a loss of access to internal systems over the weekend. 

According to Pew Research the U.S. disbursed $71.9 billion in foreign aid, a figure that represents 1.2% of the total federal outlays of over $6.1 trillion in fiscal year 2023. While projections for fiscal year 2025 stand at $58.4 billion, this number may change due to the Trump administration’s reshaping of aid programs. It is important to note that not all of the foreign aid went to programs under USAID. USAID distributed nearly $43.8 billion in aid, which is about 60.9% of the total foreign aid disbursements. The State Department disbursed $21.3 billion in aid, accounting for almost 30% of the total and the remaining portion was distributed by other agencies, including smaller amounts disbursed by the Treasury and Health and Human Services departments, the Millennium Challenge Corporation, and 16 other agencies.

Historically, U.S. foreign aid spending has fluctuated, with $24.6 billion spent in 2001. More recently, annual spending has ranged from $52.9 billion to $77.3 billion between 2008 and 2023, adjusted for inflation. The U.S. remains the world’s largest aid donor, responsible for over 40% of all humanitarian aid tracked by the United Nations in 2024.

U.S. foreign aid supports a diverse range of initiatives, including humanitarian assistance, economic development, and democracy promotion. In 2023, the largest activity area was “macroeconomic foundation for growth” at $15.9 billion, of which $14.4 billion was direct monetary support to Ukraine. Other significant areas include:

• Disaster relief and humanitarian aid ($15.6 billion)
• Combating HIV/AIDS ($10.6 billion)
• Addressing public health threats ($1.5 billion)
• Promoting democracy and good governance ($2.3 billion)

In fiscal year 2023, U.S. aid reached 177 countries and 29 regions, supporting programs implemented by various foreign government agencies, nonprofits, international organizations, and for-profit entities. Ukraine was the top recipient, receiving $16.6 billion. Israel received $3.3 billion in military aid, while other major recipients included Ethiopia, Jordan, Egypt, and Afghanistan.

USAID has a long history of collaborating with faith-based and community organizations across different religions, including but not limited to Christian, Jewish, Baha’i, Buddhist, Muslim, Latter-day Saint, and Hindu groups. The agency’s approach is based on the principle of non-discrimination, ensuring that faith-based organizations are eligible to participate in USAID programs on the same basis as any other organization.

In 2023, USAID launched its first-ever Strategic Religious Engagement Policy, which affirms the important role of religious actors as strategic development partners while maintaining the agency’s secular nature. This policy emphasizes promoting dignity for people in need across all sectors and regions, regardless of their religious affiliations.

During the first Trump administration, significant reductions to USAID’s budget were proposed, although Congress often rejected or moderated these cuts. USAID implemented some changes, including elevating humanitarian assistance into a new bureau, following congressional consultation. Despite these changes, USAID continued to operate as an independent agency during Trump’s first term, maintaining its core functions in international development and humanitarian assistance.

The American Foreign Service Association and the American Federation of Government Employees note that the decision to downsize USAID lack congressional approval in the lawsuit filed against the Trump Administration. 

The main arguments used by the unions to block the reorganization of USAID are:

1. Unconstitutional and illegal actions: The lawsuit alleges that President Trump’s efforts to dismantle USAID violate the US Constitution and federal law.
2. Lack of congressional authorization: The unions argue that only Congress has the authority to dismantle USAID, and the Trump administration’s actions were taken without congressional approval.
3. Violation of separation of powers: The lawsuit contends that Trump’s actions exceed presidential authority and infringe upon legislative powers granted to Congress.
4. Humanitarian crisis: The unions claim that the dismantling of USAID has created a global humanitarian crisis by halting crucial work of USAID employees, grantees, and contractors.
5. National security concerns: The lawsuit argues that the actions have imperiled US national security interests.
6. Job losses: The unions highlight that thousands of American jobs have been lost due to the agency’s dismantling.
7. Violation of specific laws: The lawsuit cites violations of the Foreign Affairs Reform and Restructuring Act of 1998 and the Further Consolidated Appropriations Act of 2024.

Based on the latest information, if USAID were to be restructured, approximately 9,400 employees would be out of a job. Trump’s plans include keeping about 300 USAID employees. The agency previously had over 10,000 personnel globally, including Americans, foreign nationals, and contractors.

Trump’s visions of USAID could also have a far-reaching impact on global humanitarian projects, threatening to undo decades of progress in various sectors. 

Funding Crisis

• USAID was responsible for 40% of global humanitarian funding, leaving a massive gap that other organizations and countries may struggle to fill.
• The agency’s annual budget of $40 billion, which supported hundreds of millions of people globally, is now in jeopardy.

Health and Development Setbacks

• Programs like PEPFAR, which has saved 25 million lives including 5.5 million children, face an uncertain future.
• Child life expectancy gains of up to six years in many countries where USAID operated are at risk.
• HIV/AIDS prevention and treatment programs in sub-Saharan Africa may see decades of progress reversed.

Regional Impacts

• In Ukraine, crucial humanitarian assistance and long-term stability initiatives are being disrupted.
• Countries like El Salvador, Honduras, and Guatemala are seeing over 80% of USAID programs affected, threatening efforts to address root causes of migration.
• In Syria, key sectors such as food, health, and education are expected to be significantly impacted.

Humanitarian Crisis

• The sudden halt in aid distribution has led to the food, medication and other supplies needed by marginalized communities in limbo.
• Displacement camps in areas like northern Syria, which rely on US-supported organizations, are facing threats to essential healthcare, food, and education provision.

International leaders have expressed mixed reactions to the dismantling of USAID, with a few authoritarian figures largely welcoming the move while democratic allies and humanitarian advocates have voiced concern.

Musk said the decision was made with Trump fully on board.

“None of this could be done without the full support of the president, you know. And with regard to the USAID stuff, I went over it with him in detail, and he agreed that we should shut it down,” he wrote on X (formerly Twitter). 

Dmitry Medvedev, the deputy chairman of Russia’s Security Council and a key ally of President Vladimir Putin, commended the action, expressing his approval on social media: “Smart move by Elon Musk, trying to plug USAID’s deep throat. Let’s hope the deep state doesn’t swallow him whole…”

Former Republican and Democrat USAID leaders who served under the Biden, Obama, George W. Bush, Clinton, and Reagan administrations wrote a letter to Congress stating,  “While we don’t agree on all issues, we wholeheartedly agree that USAID and America’s foreign assistance programs are vital to our interests, that the career men and women of USAID have served each of us well, and that it is the duty of the Administration and Congress to swiftly protect the Agency’s statutory role.

“Failure to maintain the global engagement that foreign aid enables, to honor the men and women of our civilian service as we do those in the military, or weaken and even destroy the Agency is to the benefit of neither political party and the detriment of all Americans,” they wrote.