Federal Appeals Court Lifts Block on USAID Cuts Initiated by Musk’s Agency
The U.S. Court of Appeals has overturned a previous decision that prevented further budget reductions at the U.S. Agency for International Development (USAID), as directed by Elon Musk’s Department of Government Efficiency. This development comes amidst ongoing efforts by the Trump administration to disband the agency.
On the same day as the ruling, the administration continued its push to dismantle USAID. An associate of Musk communicated to employees that by September, USAID would see nearly all of its positions eliminated. This announcement, made by Jeremy Lewin, a former Musk team member now holding a senior role at USAID, indicated that the agency’s independent operations would cease by September.
Secretary of State Marco Rubio informed Congress that most USAID programs would face cuts, with remaining functions transitioning to the State Department.
The legal challenge that initially blocked these cuts argued that Musk’s actions were unconstitutional due to his lack of election or Senate confirmation. While a lower court sided with this view, the appellate court found that the cuts were authorized by government officials, deeming Musk’s role as advisory.
The court noted Musk’s social media post claiming he “fed USAID into the wood chipper” did not constitute legal proof he issued these orders. Instead, he was acting as an adviser to President Trump, implementing policies to eliminate perceived inefficiencies.
Judge Marvin Quattlebaum, appointed by Trump, remarked that while Musk’s actions were unconventional, they were not necessarily unconstitutional. The judges left open the possibility of future challenges on different constitutional grounds.
Norm Eisen, representing the plaintiffs, stated their disagreement with the ruling but acknowledged the court’s openness to further constitutional scrutiny. “This fight is far from over — it’s just beginning,” Eisen remarked.
The Trump administration has yet to respond to requests for comment. The original lawsuit, brought by former USAID employees, led to a decision by District Judge Theodore Chuang, who found the dismantling likely unconstitutional and ordered restoration of digital access for USAID staff. However, he did not reverse the firings or restore the agency fully.
Democratic lawmakers have also contested the legality of dissolving the long-standing agency without congressional consent. They argue that USAID’s work in foreign aid and development supports U.S. strategic interests and is best managed independently.
Since taking office, Trump has issued orders cutting foreign assistance funding through USAID and the State Department, leading to the closure of USAID headquarters and the termination of many contracts. The agency’s shutdown has impacted global aid efforts, especially in response to crises like the Southeast Asia earthquake and various humanitarian emergencies.
USAID staff were initially given 30 days to return from overseas, a timeframe criticized for its impracticality. While Lewin’s recent notice did not exempt international staff from dismissals, it offered a phased return to the U.S. during the summer.
