Trump Administration Faces Lawsuit Over Mass Layoffs at USAID

Union Challenges Trump’s Authority to Dismantle USAID / Reuters 

The Trump administration has initiated a large-scale restructuring of the United States Agency for International Development (USAID), reducing its workforce from 10,000 employees to just 290, according to reports from The New York Times and other sources on February 6 (local time). In response, USAID employees have filed a lawsuit against the government, challenging the legality of the mass layoffs.

According to sources familiar with the restructuring, the remaining 290 employees will primarily focus on public health and humanitarian assistance. USAID officials had previously submitted a list of critical personnel required to maintain essential programs, but it appears the government has opted for a more drastic downsizing.

On February 3, protestors gathered in front of USAID’s Washington, D.C., headquarters to voice their opposition to the planned restructuring. Former USAID Deputy Administrator and public health expert Atul Gawande shared via social media that the agency intends to retain a limited number of employees across different regions: 12 in Africa, 8 in Latin America and the Caribbean, 21 in the Middle East, and 8 in Asia. He criticized the decision, stating that Secretary of State Marco Rubio assured continued life-saving assistance while simultaneously overseeing the agency’s reduction from 14,000 personnel to just 294.

USAID staff were informed that approximately 800 grants and contracts managed by the agency would be terminated. Most U.S.-based USAID employees have already been dismissed or placed on administrative leave, while those stationed abroad are expected to receive similar notices before the end of February 7.

Acting USAID Administrator Marco Rubio defended the restructuring, describing USAID as an agency that has been "completely uncooperative" and detached from U.S. national interests for years. However, he emphasized that the administration is not eliminating USAID’s programs but rather transferring oversight to the State Department.

The American Federation of Government Employees (AFGE) and the American Foreign Service Association (AFSA), two of the largest public-sector unions, have filed a lawsuit against President Trump, Secretary Rubio, Treasury Secretary Scott Bessent, the State Department, and the Treasury Department. The lawsuit argues that USAID was established by Congress through formal legislation and that the president does not have the authority to dismantle the agency unilaterally.

In the legal complaint, the plaintiffs assert that "not a single step in the USAID dissolution process has received congressional approval." They further contend that the dissolution of USAID could have devastating humanitarian consequences, halting critical programs that combat diseases such as malaria and HIV/AIDS. "Already, 300 infants who otherwise would not have contracted HIV have been infected, and thousands of women and girls are at risk of dying due to pregnancy and childbirth complications," the lawsuit states.

The restructuring of USAID is reportedly being spearheaded by Elon Musk, CEO of Tesla and the head of the Office of Government Efficiency (DOGE). The Trump administration has justified the agency’s closure by citing inefficiencies in budget utilization and a bureaucratic culture similar to that of non-governmental organizations (NGOs). Instead of maintaining USAID as a standalone entity, the administration plans to integrate its functions into the State Department.

Democrats and critics argue that dissolving an agency created by congressional mandate without legislative approval is illegal. They warn that the decision sets a dangerous precedent, undermining the authority of Congress and jeopardizing essential global aid initiatives.