Judge Blocks Trump-Musk Plan to Lay Off USAID Employees

WASHINGTON, SATURDAY — United States District Court Judge Carl Nichols, Friday (7/2/2025) local time, rejected the plan by Elon Musk and President Donald Trump's administration to lay off around 2,700 employees of the US Agency for International Development or USAID, while ordering that the agency's laid-off staff be rehired.

Judge Nichols also blocked an order that would give thousands of USAID employees abroad only 30 days to move their families to the US.

This decision is a victory for the American Foreign Service Association and the American Federation of Government Employees, two unions that represent federal workers in the US. The decision will take effect starting February 14.

Nichols, in his ruling, will consider the request for a long-term temporary suspension at the hearing on Wednesday (12/2/2024). In his decision, he stated that the labor union had shown strong evidence of irreparable harm if the court did not intervene.

USAID, the agency that has been functioning to channel various financial aid to many countries, is shrouded in uncertainty after Trump announced the suspension of the agency's operations effective from the end of January 2025. On February 1, the official website of the agency was no longer active.

The Executive Director of USAID, Matt Hopson, who was actually appointed by Trump himself, has resigned from his position. This situation has resulted in uncertainty for around 10,000 USAID employees spread across various countries, including in Indonesia.

At the same time, Elon Musk, who became Trump's trusted person to streamline bureaucracy through the Department of Government Efficiency (DOGE), promoted the idea that USAID was wasting American taxpayers' money and even becoming a place for money laundering. Like Trump, Musk has never provided any evidence regarding these allegations.

Justice Department official, Brett Shumate, told Judge Nichols that there is corruption and fraud in the agency. "The President has determined that there is corruption and fraud in USAID," said Shumate.

Trump also wants USAID to be merged into the Department of State. This move is seen as lacking legal basis. Until now, USAID has been an independent government agency and not under any ministry.

Trump ordered DOGE to inspect the USAID office in Washington DC. DOGE wanted to review the files concerning the employees and the security system, but USAID did not grant permission.

Hours after taking office on Jan. 20, Trump ordered a temporary halt to all U.S. foreign aid to ensure it was in line with his “America First” policy. Chaos swept through USAID, which distributes billions of dollars in humanitarian aid around the world.

The State Department issued a worldwide stop-work order after the executive order was issued. This effectively freezes all foreign aid except emergency food assistance. USAID programs that provide life-saving assistance around the world have also been halted. Experts say Trump's decision risks killing many innocent people.

The US government, in a notice sent to employees on Thursday (6/2/2025), stated that only 611 essential and key workers would be retained.

"The massive workforce reductions, the office closures, the forced relocation of these people are all done beyond the executive's authority in violation of the separation of powers," Karla Gilbride, one of the union's attorneys, said at the hearing Friday.

However, the union's request to ask a court judge to reopen USAID office buildings and restore funding for the agency's grants and contracts was rejected.

In his reasoning, Judge Nichols said that Trump's order, which only gave workers 30 days to return to the US, had a major impact, not only on the workers themselves, but also on their families. Nichols, referring to reports from USAID employees abroad, said that many of them had no place to go if they returned to the US, especially those who had worked abroad for decades.

Not only is it a matter of housing, but there are also families who have children with special needs who are uprooted from the education system in the area where their parents are placed. This will be a difficulty in itself.

Not only that, some agency employees also said the emergency communications system was no longer functioning. The Associated Press previously reported that USAID contractors in the Middle East and elsewhere had their “panic button” apps removed from their phones or disabled when the government abruptly laid them off.

"Administrative leave in Syria is not the same as administrative leave in Bethesda," Judge Nichols said Friday night.

A number of affected workers, including pregnant women, are upset by Trump's policy.

"We've really focused our lives on this USAID mission, and we don't have a home to go back to," said the spouse of one employee based in Latin America. "We don't know how we're supposed to just pick ourselves up and go."

Another employee, who did not want to be identified, said they were confused by the situation. "We're not sure if Secretary of State Marco Rubio and President Trump are going to leave us overseas or leave us when we land on American soil," he said.

"We have been told there is no money to help U.S. families who are waiting for babies to be resettled in the United States," the employee continued.

The ruling is the latest setback for the Trump administration. U.S. aid, which is largely channeled through the agency, is worth $72 billion in fiscal 2023. The budget is earmarked for health programs, including women's health in conflict zones, access to clean water, HIV/AIDS treatment, and other areas, such as energy security, anti-corruption programs. (AP/Reuters)