On Tuesday, several organizations and companies that contract with the U.S. Agency for International Development (USAID) filed a lawsuit against the Trump administration. The plaintiffs, including the American Bar Association and the development firm Chemonics, argue that the administration’s actions to weaken the agency are unlawful.
The lawsuit, filed in federal court in Washington, claims that President Trump does not have the legal authority to shut down a federal agency created by Congress or to refuse spending money allocated by lawmakers. The plaintiffs are seeking a court order to reverse the funding cuts and operational changes made to USAID.
This is the latest legal challenge against the administration’s handling of USAID. The lawsuit targets President Trump, the State Department, and the Office of Management and Budget (OMB). It accuses these bodies of halting federal spending, undermining the agency’s operations, and stripping it of necessary resources.
The plaintiffs assert that the president and his administration cannot bypass laws passed by Congress to set their own spending priorities. They argue that the administration’s actions have severely reduced USAID’s ability to function, leaving it “a shell of its former self” – underfunded, understaffed, and unable to perform its core tasks. The lawsuit highlights how USAID has been absorbed by the State Department and stripped of its autonomy.
Contractors working with USAID have also been directly affected. The lawsuit says funding has been cut for existing contracts, including millions of dollars for ongoing projects. As a result, contractors are forced to lay off staff and end operations, leaving them in a precarious position. Without funding, the lawsuit claims that these contractors may not survive if their work is not resumed.
The White House has not yet responded to requests for comment. However, the administration has previously argued that the president holds significant power over foreign affairs and can put agency staff on leave at his discretion.
This marks the third lawsuit filed in Washington concerning USAID’s challenges under the Trump administration. Other legal actions have been brought by a government employee union, nonprofit groups advocating for AIDS research, and organizations focused on global journalism development.
The lawsuit highlights growing concerns about the future of USAID and its contractors in the face of funding cuts and operational disruptions.
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