A federal judge has ordered the Trump administration to temporarily lift its three-week funding freeze on U.S. aid and development programs, citing the widespread harm caused by the abrupt shutdown of overseas assistance efforts.
The ruling marks a major setback for the administration’s efforts to dismantle the U.S. Agency for International Development (USAID), which President Donald Trump and ally Elon Musk have criticized as out of step with their policy agenda.
Issued by U.S. District Judge Amir Ali in Washington, the ruling is the first to directly challenge the administration’s blanket suspension of USAID funding.
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Ali found that administration officials failed to provide a rational explanation for halting thousands of congressionally approved programs, which left U.S. and international contractors unpaid and forced mass layoffs.
“The administration has not justified why a sweeping suspension of all foreign aid was necessary for a program review,” Ali wrote, emphasizing the financial distress inflicted on businesses, nonprofits, and suppliers.
Ali’s order blocks Secretary of State Marco Rubio and other officials from enforcing stop-work directives that halted payments under contracts predating Trump’s Jan. 20 executive order freezing foreign assistance. The judge also dismissed the administration’s claim that waivers were available to mitigate harm, noting that no functional waiver system existed.
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In a separate case, U.S. District Judge Carl Nichols extended his order preventing the administration from forcing nearly all USAID staffers to take leave and shutting down most U.S. aid operations abroad. Nichols pressed government attorneys for contingency plans to protect employees stranded in high-risk locations, including those who had to flee political violence in Congo.
The Trump administration, along with Musk’s Department of Government Efficiency (DOGE), has aggressively targeted USAID, citing unsubstantiated claims of waste. In court filings, USAID’s deputy head, Pete Marocco, alleged that “insubordination” among agency staffers necessitated a near-total workforce purge before reviewing aid programs. However, agency employees have countered that they were following unclear directives, some issued by Musk associates with no official role.
The administration contends that Trump has broad, unchecked power over foreign affairs, while critics argue that dismantling USAID without congressional approval exceeds executive authority. With legal battles mounting, the courts and lawmakers may have the final say over the agency’s fate.
