A coalition of USAID contractors, including major players like the American Bar Association and international development firm Chemonics, has taken legal action against the Trump administration, accusing it of unlawfully dismantling the U.S. foreign aid agency.
Filed in federal court in Washington, the lawsuit argues that the president lacks the authority to unilaterally shut down a congressional agency or withhold funds allocated by lawmakers. The complaint paints a dire picture, alleging that USAID has been reduced to a hollow shell—stripped of funding, abandoned by employees, and effectively absorbed into the State Department.
The administration’s freeze on aid spending has halted critical projects worldwide, including the contracted delivery of $240 million in medical supplies. The lawsuit warns that failing to deliver these essential goods could lead to as many as 566,000 deaths, including 215,000 children. Meanwhile, contractors are being forced to lay off workers and cut ties with local partners, with some staff facing potential legal consequences abroad as funding dries up.
This legal battle is the latest in a series of challenges to the administration’s abrupt policy shift. A separate lawsuit recently resulted in a judge reinstating 2,700 USAID employees who had been placed on leave, though funding remains in limbo.
The White House has yet to respond to the lawsuit, but officials have previously argued that the president wields broad power over foreign affairs and can pause agency operations as he sees fit.
