Trump Officials at USAID Defy Court Order, Keep Foreign Aid Frozen

Despite a federal court order, officials appointed by former President Donald Trump at the U.S. Agency for International Development (USAID) have not resumed funding for thousands of programs worldwide. Many of these initiatives have been forced to lay off workers, with some struggling to survive due to the funding freeze.

Court Order to Restore Funding Ignored

Last week, U.S. District Judge Amir H. Ali ordered USAID to reinstate funding to affected programs while legal proceedings continue. The ruling came after plaintiffs—employees and grant recipients—demonstrated that losing USAID funds “threatens the very existence of [their] business.” The court gave the agency until Tuesday to explain how it was complying with the order.

Global Impact of Funding Freeze

The sudden halt in USAID funding has disrupted projects worldwide, shutting down shelters for human rights defenders in Cambodia and causing layoffs among journalists investigating corruption in authoritarian regimes. The move has sparked concerns among international aid organizations and advocacy groups.

USAID Defends Contract Terminations

In a filing submitted late Tuesday, USAID argued that the judge’s order did not prevent it from “enforcing the terms of contracts or grants.” The agency claimed a review of contracts found that most explicitly or “implicitly” allowed termination.

According to USAID, nearly 500 contracts have been canceled so far. Some were eliminated for focusing on diversity, equity, and inclusion, while others were axed due to their emphasis on sustainability and climate change. Additionally, USAID cut contracts linked to “regime change,” civil society support, or democracy promotion.

Selective Funding Continues

Despite the widespread cuts, USAID reported that more than 20 contracts, valued at over $250 million, remain intact. However, this represents a small fraction of the agency’s total budget. In fiscal year 2023, USAID spent over $40 billion across 130 countries, with the bulk of funds allocated to governance, health, and humanitarian assistance—more than a quarter directed toward sub-Saharan Africa.

Criticism Over USAID’s Actions

Peter Maybarduk of Public Citizen, an organization representing plaintiffs in the lawsuit, called USAID’s response “outrageous.” He criticized the agency for failing to restore promised funding despite a legal mandate. “People who have long been partners of the United States, in vulnerable situations around the world, will suffer as a result of this failure,” he said in an email quoted by Reuters.

An executive with a USAID-funded organization, who spoke anonymously for fear of retaliation, expressed frustration over the cuts, noting that even democracy promotion projects were being eliminated. “This is Alice in Wonderland stuff,” he said.

Trump Administration’s Plan to Restructure USAID

The Trump administration has long sought to merge USAID into the State Department, a move critics say would weaken U.S. foreign aid efforts. In an affidavit, USAID Deputy Administrator Peter Marocco stated that the State Department had already terminated more than 700 foreign assistance-funded grants in the past month.

While Judge Ali has yet to respond to USAID’s latest filing, legal experts suggest that further court action may be necessary to enforce the ruling. Meanwhile, the agency has indicated it will continue reviewing contracts to ensure they align with Trump administration priorities and to assess potential waste or fraud.

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