The Trump administration has continued its sweeping overhaul of the U.S. Agency for International Development (USAID), dismissing 2,000 employees and placing nearly all remaining staff on leave.
This follows a federal judge’s ruling on friday, allowing the administration to proceed with its plan to remove thousands of USAID staff from their roles both domestically and abroad.
U.S. District Judge Carl Nichols rejected a lawsuit brought by employees seeking to temporarily block the government’s decision. The agency subsequently confirmed that approximately 2,000 U.S.-based employees were being dismissed.
“As of 11:59 p.m. EST on sunday, 23 february 2025, all USAID direct hire personnel, with the exception of designated personnel responsible for mission-critical functions, core leadership, and/or specially designated programmes, will be placed on administrative leave globally,” stated the notices sent to USAID workers, as seen by The Associated Press.
This latest move escalates what critics describe as a month-long assault on USAID by Trump and his close ally, billionaire entrepreneur Elon Musk, dubbed ‘First Buddy.’ The administration has already shut down the agency’s Washington headquarters and halted thousands of U.S. aid and development programmes worldwide, following an initiative to freeze foreign assistance.
Trump and Musk, who has taken on a key role as the administration’s chief cost-cutter, argue that USAID’s work is wasteful and serves to advance a liberal agenda.
With reports of overseas staff being cut off from government communications, the agency has stated its commitment to ensuring the safety of personnel stationed abroad. The notices confirmed that, until their return home, overseas personnel would retain access to agency systems, diplomatic channels, and other essential resources.
Employees placed on leave overseas are expected to receive “voluntary Agency-funded return travel” along with other benefits, according to the administration.
Judge Nichols, a Trump appointee, acknowledged concerns over the fate of workers stationed in high-risk regions, particularly their lack of access to emergency communications. However, he ruled that the government had provided sufficient assurances that employees would still be able to access emergency two-way radios and a mobile phone application equipped with a ‘panic button.’
He stated that, based on these provisions, “the risk posed to USAID employees who are placed on administrative leave while stationed abroad—if any—is far more minimal than it initially appeared.”
The dismissal notices and administrative leave placements coincide with a mass termination of USAID contractors. Hundreds received generic form letters of dismissal over the weekend, copies of which were obtained by the AP. The impersonal nature of these notifications, which omitted names and job titles, may create difficulties for affected workers in claiming unemployment benefits.
Meanwhile, a separate legal challenge has led to another judge temporarily blocking the administration’s freeze on foreign aid. The judge ruled last week that the government had continued withholding funding despite a court order, and instructed the administration to temporarily restore aid programmes worldwide.
USAID employees overseas will have the option to return to the U.S. with their travel costs covered by the agency. Alternatively, they may remain on paid leave at their foreign posts while retaining access to critical resources.
Musk’s Department of Government Efficiency (DOGE), which has spearheaded cost-cutting measures across multiple agencies, remains at the centre of controversy. Numerous lawsuits have emerged since 20 January, challenging Musk’s sweeping cuts. However, DOGE has so far managed to defend its position in several cases.
In a significant victory for DOGE, a federal judge dismissed a legal bid to prevent Musk from accessing sensitive government data. The lawsuit, filed by attorneys general from 14 states, sought to curtail Musk’s authority, arguing that his department had obtained extensive access to confidential information across multiple federal agencies.
U.S. District Judge Tanya Chutkan ruled that, while there are valid concerns regarding Musk’s power, there was insufficient evidence to justify an immediate restraining order.
More Read
The plaintiffs contended that Musk’s influence amounted to an unconstitutional overreach, asserting that such authority should be reserved for elected officials or individuals confirmed by the Senate. However, the Trump administration argued that the layoffs were the decision of agency heads and that, despite Musk’s vocal support for the effort, he was not directly involved in DOGE’s daily operations.
Judge Chutkan acknowledged the concerns regarding Musk’s “unchecked authority” and the lack of congressional oversight of DOGE, but stated that these matters could be addressed in future legal proceedings.
Meanwhile, a Massachusetts judge has lifted a temporary halt on Trump’s federal worker ‘buyout’ scheme. District Judge George O’Toole ruled that labour unions lacked standing to challenge the directive, as they were not directly impacted by it.
O’Toole, who was appointed by President Bill Clinton, lifted the restraining order on 10 February, writing that “aggrieved employees can bring claims through the administrative process.”
