In a major legal setback to President Donald Trump’s efforts to cut wasteful government spending, a federal judge on Tuesday ordered an immediate halt to the shutdown of the U.S. Agency for International Development (USAID). The move came after the Department of Government Efficiency (DOGE), led by billionaire Elon Musk, initiated a plan to dismantle the agency.
Judge Slaps Down Musk’s Efforts to Slash Bureaucracy
District Court Judge Theodore Chuang ruled that Musk and DOGE’s dismantlement of USAID “likely violated the United States Constitution in multiple ways.” His ruling came in response to a lawsuit filed by current and former USAID employees and contractors who claimed that Musk lacked the legal authority to carry out such drastic measures without Senate confirmation.
Under the Appointments Clause of the Constitution, key government officials must be confirmed by the Senate before they can exercise significant power. Chuang sided with the plaintiffs, arguing that allowing Musk to continue running DOGE without confirmation would undermine the Constitution and reduce the Appointments Clause to “nothing more than a technical formality.”
Since Musk took over DOGE in an aggressive effort to slash government waste and reduce bureaucracy, USAID had seen most of its employees either fired or placed on indefinite leave. Established in 1961, USAID has long been responsible for distributing humanitarian aid worldwide—though critics argue it has become a bloated agency rife with inefficiency and political favoritism.
The lawsuit highlighted that the power to dismantle agencies like USAID ultimately rests with Congress, not the executive branch acting unilaterally. The judge concurred, stating that Musk’s actions overstepped the authority of Congress and interfered with legislative decisions regarding foreign aid and international programs.
White House Responds to Ruling
Secretary of State Marco Rubio recently announced that the administration was canceling 83% of USAID’s programs, citing the need to reassess America’s foreign aid expenditures. The move was in line with President Trump’s executive order issued in January, which placed a freeze on all U.S. foreign aid until a comprehensive review could be conducted.
However, Tuesday’s ruling is just the latest in a series of legal obstacles facing Trump’s efforts to shrink the federal government. Another judge recently ordered the rehiring of thousands of government workers fired by Musk’s DOGE as part of its efficiency overhaul.
Judge Chuang’s ruling not only halts the shutdown but also mandates the immediate reinstatement of USAID employees’ access to email and other electronic systems. Additionally, he ruled that the agency should be allowed to reoccupy its Washington headquarters unless an authorized official from the administration confirms its permanent closure.
Trump’s initiative to cut waste and inefficiency in the federal government remains one of his most aggressive policy moves in his second term. Supporters argue that USAID has long been a symbol of unchecked spending, often funding programs that do little to advance American interests. Critics, however, claim that cutting foreign aid could harm diplomatic relations and humanitarian efforts worldwide.
With the legal battle over USAID heating up, the future of Trump’s broader cost-cutting agenda remains uncertain. Will the administration find a way to continue its government downsizing efforts, or will activist judges continue to block these reforms? One thing is clear—this fight is far from over.
