Trump Administration Faces New Lawsuit From USAID Contractors

Several organizations, including the Global Health Council, the Small Business Association for International Companies and the American Bar Association, filed a lawsuit Tuesday in U.S. District Court against President Donald Trump and other federal officials over foreign assistance programs' funding.

Newsweek reached out for comment to the State Department via its online contact form.

Why It Matters

The U.S. pays more in foreign aid than any other country. Dismantling the U.S. Agency for International Development emerged as a key priority for Trump upon his return to the White House, and critics have warned that ending USAID programs will worsen humanitarian conditions across the globe. They also say it will leave the U.S. in a weaker position in terms of national security.

Proponents of cutting foreign aid programs argue that those funds should instead be spent at home to tackle issues like border security and that these programs are a misuse of taxpayer dollars.

What To Know

Most USAID programs worldwide would be suspended following a funding freeze initiated by the White House. Secretary of State Marco Rubio said parts of the agency will continue to run under Pete Marocco, the State Department's director of foreign assistance.

This comes amid Trump's efforts to reduce the size of the federal government and cut federal spending, led by billionaire Elon Musk and the Department of Government Efficiency.

In their lawsuit, the plaintiffs are seeking declaratory and injunctive relief. They allege that the defendants have unlawfully and unconstitutionally disrupted the funding and administration of USAID and other federal foreign assistance programs.

The complaint says Trump, Rubio and executive branch officials have attempted to dismantle USAID and have withheld billions of dollars in congressionally appropriated foreign assistance funding.

USAID contractors sue Trump administration
Protesters rally outside the U.S. Agency for International Development's headquarters in Washington, D.C., on February 3. Kayla Bartkowski/Getty Images

"In an unprecedented series of actions, the President and other executive-branch officials have sought to dismantle an independent agency established by Congress and withhold billions of dollars in congressionally appropriated foreign-assistance funding," the complaint reads.

It continues, "One cannot overstate the impact of that unlawful course of conduct: on businesses large and small forced to shut down their programs and let employees go; on hungry children across the globe who will go without; on populations around the world facing deadly disease; and on our constitutional order."

The complaint says Trump's actions violate "basic precepts of administrative law" and several federal statutes.

What People Are Saying

Donald Trump wrote on Truth Social: "USAID IS DRIVING THE RADICAL LEFT CRAZY, AND THERE IS NOTHING THEY CAN DO ABOUT IT BECAUSE THE WAY IN WHICH THE MONEY HAS BEEN SPENT, SO MUCH OF IT FRAUDULENTLY, IS TOTALLY UNEXPLAINABLE. THE CORRUPTION IS AT LEVELS RARELY SEEN BEFORE. CLOSE IT DOWN!"

Senator Brian Schatz, a Hawaii Democrat, said on X (formerly Twitter): "There's an outbreak of Ebola in Uganda. There's an outbreak of Marburg's disease in Tanzania. Thousands of American diplomats leaving their posts abruptly. We just look so weak and a bit nuts. Foreign policy is hard, but this is just a very big early blunder."

What Happens Next

The Trump administration is set to decide which programs will be cut within 90 days from January 20. Meanwhile, Trump's USAID actions are facing several legal challenges.

Update 2/11/25, 2:11 p.m. ET: This story was updated with additional information and background.

Newsweek Logo

fairness meter

fairness meter

Newsweek is committed to journalism that's factual and fair.

Hold us accountable and submit your rating of this article on the meter.

Newsweek is committed to journalism that's factual and fair.

Hold us accountable and submit your rating of this article on the meter.

Click On Meter To Rate This Article

About the writer

Gabe Whisnant is Deputy Weekend Editor at Newsweek based in South Carolina. Prior to joining Newsweek in 2023, he directed daily publications in North and South Carolina. As an executive editor, Gabe led award-winning coverage of Charleston church shooter Dylan Roof's capture in 2015, along with coverage of the Alex Murdaugh double murder trial. He is a graduate of the University of North Carolina-Wilmington. You can get in touch with Gabe by emailing g.whisnant@newsweek.com. Find him on Twitter @GabeWhisnant.

and

Andrew Stanton is a Newsweek weekend reporter based in Maine. His role is reporting on U.S. politics and social issues. Andrew joined Newsweek in 2021 from The Boston Globe. He is a graduate of Emerson College. You can get in touch with Andrew by emailing a.stanton@newsweek.com. Languages: English.


Gabe Whisnant is Deputy Weekend Editor at Newsweek based in South Carolina. Prior to joining Newsweek in 2023, he directed ... Read more