US judge pauses plan to put USAID workers on leave

investing.com 07/02/2025 - 19:08 PM

U.S. Judge Reinstates USAID Employees

By Andrew Goudsward, Nate Raymond, and Daphne Psaledakis
Washington (Reuters)

A U.S. judge has temporarily allowed approximately 2,700 USAID employees, previously placed on leave by the Trump administration, to return to work, pausing plans to dismantle the agency.

U.S. District Judge Carl Nichols, appointed by Trump, granted a request from the largest U.S. government workers’ union and an association of foreign service workers, who sued to block the administration’s actions.

Nichols’s ruling, effective until February 14, halts the plan to place 2,200 USAID workers on paid leave, reinstating around 500 employees already furloughed, and prohibits relocating humanitarian workers stationed abroad.

During the court hearing, Nichols noted the unions demonstrated a potential for “irreparable harm” if actions were not halted. However, he denied other requests from the unions, such as reopening USAID buildings and restoring funding for grants.

A Justice Department official informed the court that the Trump administration, citing perceived corruption and fraud at USAID, plans to maintain only 611 essential workers amid a global workforce surpassing 10,000.

Trump, in a recent post, accused USAID of unprecedented levels of corruption, claiming agency operations should be ceased. Following his inauguration, Trump mandated a pause on U.S. foreign aid to align with his “America First” policies, impacting crucial humanitarian programs worldwide.

Elon Musk, a close Trump ally, has been involved in the agency’s restructuring efforts aimed at reducing federal bureaucracy. In fiscal year 2023, the U.S. distributed $72 billion in aid, with USAID contributing significantly despite budgetary constraints.




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