Judge orders reinstatement of USAID functions, says DOGE effort to shutter agency likely unconstitutional

A federal judge in Maryland has ruled that the Trump administration’s efforts to shut down the U.S. Agency for International Development (USAID) were likely unconstitutional, and has ordered it to ultimately reinstate the agency’s lawful functions.

On Tuesday, U.S. District Judge Theodore Chuang concluded DOGE’s efforts “to shut down USAID on an accelerated basis, including its apparent decision to permanently close USAID headquarters without the approval of a duly appointed USAID officer, likely violated the United States Constitution in multiple ways.”

Chuang said these actions “not only harmed the plaintiffs, but also the public interest, because they deprived the public’s elected representatives in Congress of their constitutional authority to decide whether, when, and how to close down an agency created by Congress.”

The judge issued a preliminary injunction blocking DOGE and the administration from further actions against USAID, likely an emergency Department of Justice (DOJ) appeal to the 4th Circuit U.S. Court of Appeals, then potentially to the Supreme Court.

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In his ruling, Chuang, a 2014 Obama bench appointee, also ordered immediate restoration of email and computer access to all USAID employees, including those placed on administrative leave.

DOGE is now prohibited from any further cuts to USAID.

The lawsuit was filed by current and former agency employees and contractors.

Chuang’s decision marks the first time a judge has ruled that Musk is likely exercising enough independent authority to require him to be confirmed by the Senate under the Constitution’s Appointments Clause, the Hill reported. 

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This decision comes after a different federal judge ordered the Trump administration to pay the remainder of foreign aid owed to contractors for completed work last week, noting in a new court ruling that the administration likely violated the separation of powers doctrine by “unlawfully impounding” nearly $2 billion in funds appropriated by Congress.

U.S. District Court Judge Amir Ali, a Biden appointee, said in the ruling that the Trump administration likely exceeded its constitutional authority in attempting to block the payments owed by the State Department and USAID to grant recipients and foreign aid contractors.

“Here, the executive has unilaterally deemed that funds Congress appropriated for foreign aid will not be spent,” Ali said. “The executive not only claims his constitutional authority to determine how to spend appropriated funds, but usurps Congress’ exclusive authority to dictate whether the funds should be spent in the first place.”

Ali had previously ordered the Trump administration to pay all owed foreign aid funds for previously completed work, totaling $1.9 billion, by Feb. 26, at 11:59 p.m. 

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The Supreme Court took up the case for emergency review last week, but ruled 5-4 to reject the administration’s request to extend the freeze. Instead, the court remanded the case back to the D.C. federal court and Ali to hash out the specifics of what must be paid and when.

USAID aid became an early target of the Trump administration, with the president being a longtime critic of overseas spending, arguing that it does not benefit the American taxpayer and going so far as to call those who run the top agency “radical lunatics.”

Republicans argue it is wasteful, promotes liberal agendas and should be enfolded into the State Department, while Democrats say it saves lives abroad and helps U.S. interests by stabilizing other countries and economies.

In all, the Trump administration said it will eliminate 5,800 of 6,200 multi-year USAID contract awards, for a cut of $54 billion. Another 4,100 of 9,100 State Department grants were being eliminated, for a cut of $4.4 billion, according to a State Department memo reviewed by the Associated Press.

Several examples of questionable spending have been uncovered at USAID, including more than $900,000 to a “Gaza-based terror charity” called Bayader Association for Environment and Development and a $1.5 million program slated to “advance diversity, equity, and inclusion in Serbia’s workplaces and business communities.”

Fox News Digital’s Michael Dorgan and the Associated Press contributed to this report.